Enbridge operates as an energy transportation and distribution company in the United States and Canada. The Company operates in five segments: Liquids Pipelines; Gas Distribution; Gas Pipelines, Processing and Energy Services; Sponsored Investments, and Corporate. The company was founded in 1949 and is based in Calgary, Canada.
ENB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Enbridge Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Enbridge Inc ranked in the 95th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Enbridge Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 57. Notably, its equity weight is greater than 67.66% of US equities in the Energy sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 1.76 years, is 1.35% -- higher than 93.85% of stocks in our DCF forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PBFX, ENBL, SHLX, CVE, and THTI can be thought of as valuation peers to ENB, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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