Canadian Utilities Limited (CU) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Canadian Utilities Limited stock C$27.49, price C$52.35, that is 47.5% below the price, quality 42 out of 100. Rating: strongly overvalued. Calculated from audited financials with 14 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range C$24.33 – C$55.62 · fair‑value band C$10.58 – C$30.20 · the C$52.35 price screens above the C$27.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Canadian Utilities Limited, together with its subsidiaries, engages in the electricity, natural gas, renewables, pipelines, and liquids businesses in Canada, Australia, and internationally. It operates through ATCO Energy Systems, ATCO EnPower, ATCO Australia, and Financing & Other segments.
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The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in northern and central east Alberta, the Yukon, the Northwest Territories, and in the Lloydminster area of Saskatchewan; and international electricity services, as well as offers integrated natural gas transmission and distribution services throughout Alberta and in the Lloydminster area of Saskatchewan.
The ATCO EnPower segment provides electricity generation, natural gas storage, industrial water solutions, and related infrastructure development throughout Alberta, the Northwest Territories, Ontario, Mexico, and Chile.
The ATCO Australia segment offers regulated natural gas distribution services in Western Australia and electricity generation services. It also provides home maintenance solutions. The company was incorporated in 1927 and is headquartered in Calgary, Canada.
Canadian Utilities Limited is a subsidiary of ATCO Ltd.
Stock analysis
Canadian Utilities Limited (CU) currently trades at C$52.35, while our model-based Fair Value estimate is C$27.49, 47% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of C$25.99 per share, and 0 of the 12 models we run sit above the C$52.35 price.
Bear case: the Earnings-Based group reads lowest at C$5.10, and 12 of the 12 models stay below the price. Data coverage for this calculation is medium.
Scenario range: C$10.58 (bear) to C$30.20 (bull), the price of C$52.35 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 42/100 (below-average quality), in the Utilities sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Canadian Utilities Limited reported revenue of C$3.7B in FY2025 versus C$3.5B in FY2021, a compound +1.2%/yr. Reported net income was C$119M in FY2025, compounding −25.8%/yr from FY2021.
Key figures
Market cap C$14.3B (≈ $10.2B) Large · P/E ratio 304.7 · P/S ratio 9.83 · EPS (TTM) C$0.1600 · Dividend yield 3.5% · Net margin 3.2% · Return on equity 1.9% · Return on assets (EBIT) 4.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 6% below its 52-week high and 39% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −48% fair-value upside, at −47%, CU screens cheaper than that median.
Fair Value models
BearC$10.58Fair Value C$27.49BullC$30.20
Price C$52.35 · Downside -47.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCFn/an/aC$4.5776
Residual IncomeC$16.15C$16.22C$16.7875
Growth DCFn/an/aC$3.8874
All 14 models by family
DCF Models
FCF DCFn/an/aC$4.5776
5Y EBITDA Exitn/aC$15.27C$42.1671
10Y EBITDA Exitn/aC$5.22>C$20.8864
Earnings-Based
Graham-DoddC$2.96C$5.10C$6.2364
Dividend Discount
Gordon GGMC$20.31C$25.99C$32.0267
DDM Multi-StageC$20.31C$27.95C$37.7065
Multiples
P/E MultipleC$5.88C$7.84C$9.8061
P/S MultipleC$5.56C$7.41C$9.2656
P/B MultipleC$25.70C$34.26C$42.8353
EV/EBITDAC$8.20C$25.27C$42.3460
Asset-Based
NCAV (Graham)C$9.79C$13.12C$19.5952
Growth DCF
Growth DCFn/an/aC$3.8874
Economic Profit
Residual IncomeC$16.15C$16.22C$16.7875
Growth Earnings
Growth-Adj P/EC$4.18C$5.97C$7.7666
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−1.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.7%
Start year 2020 (pandemic). Over 10 years: +1.2% a year
Revenue growth 32 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−19.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year−22.5%
Dividend (yield on the price)3.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−22.5% vs −15.3%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.30% → 16%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+56.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about +52.7% a year for the price.
News mood ⓘNews mood, the average tone of recent news (85 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Limited durable moat signals and thin evidence across factors form the main weakness, with low roe and high leverage as clear warning signs, while basic sector positioning offers minimal offsetting strength.
Main risk: Combining operations across different footprints in the proposed merger with Emera introduces execution and regulatory risks that could impair delivery of stronger long-term results from the expanded platform.
The proposed all-stock merger with Emera would create a much larger utility spanning more regions and positioned for big infrastructure spending amid rising electricity demand. Scale could support growth through electrification trends, yet combining operations across different footprints introduces execution and regulatory risks over the next year. Our models currently see the stock as overvalued. Will the expanded platform deliver stronger long-term results than the standalone business could achieve?
Compare Canadian Utilities Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Utilities - Diversified · 49 stocks
Beats the industry median on 2/15 measures
Overall it trails its industry peers.
Valuation
Quality Score42 · Below median
Fair Value upside−47.5% · Below median
Profitability
Return on equity (12 months)1.9% · Bottom 25%
Return on assets0.5% · Bottom 25%
Net margin (12 months)3.3% · Bottom 25%
Operating margin (12 months)29.7% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)8.6% · Above median
Dividend yield (12 months)3.5% · Below median
Balance sheet
Debt / equity1.87× · Highest 25%
Valuation Multiplesvs Utilities - Diversified median · lower = cheaper
P/E (12 months)304.7× · Priciest 25%
P/B2.24× · Pricier than median
P/S (12 months)3.80× · Priciest 25%
Price / free cash flow138.8× · Priciest 25%
EV/EBITDA13.9× · Pricier than median
PEG2.64× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)43· sector 32
PAST (return on equity)8· sector 35
HEALTH (low debt)7· sector 48
DIVIDEND (yield)71· sector 82
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Canadian Utilities Limited (CU) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of C$27.49 versus a price of C$52.35, about 47% lower (overvalued).
What is the fair value of CU?
Our model-based fair value for Canadian Utilities Limited is C$27.49 (as of Nov 1, 2026), built from audited fundamentals. The current price: C$52.35.
What is the quality score of CU?
Canadian Utilities Limited has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Canadian Utilities Limited (CU)?
Our model-based price target is the fair value of C$27.49 (as of Nov 1, 2026) from 14 valuation models. Cautious scenario C$10.58, optimistic scenario C$30.20. It is a calculation from audited fundamentals, not an analyst target.
What is the Canadian Utilities Limited stock forecast for 2026?
Our models put fair value at C$27.49, about 47% lower versus a price of C$52.35 (overvalued). Cautious scenario C$10.58, optimistic scenario C$30.20. The calculation is refreshed regularly with new filings.
What is the revenue of Canadian Utilities Limited (CU)?
Canadian Utilities Limited reported trailing-twelve-month revenue of about C$3.8B (latest available figure, as of Nov 1, 2026).
Does Canadian Utilities Limited pay a dividend?
Canadian Utilities Limited currently shows a dividend yield of 3.53% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Canadian Utilities Limited (CU)?
For today's price to be fair in a discounted-cash-flow model, Canadian Utilities Limited would have to grow free cash flow by +56.0 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.7 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of CU use?
Our models discount Canadian Utilities Limited at 8.5 %: a base by market capitalisation (mid), damped by beta 0.57, country premium for Canada. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Canadian Utilities Limited that is +56.0 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Canadian Utilities Limited (CU) delivered so far?
Over the past 5 years revenue at Canadian Utilities Limited grew +2.7 % a year. The price currently implies +56.0 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Canadian Utilities Limited (CU) growing?
The median revenue growth in the sector is +4.3 % a year. That is the yardstick for the growth priced into Canadian Utilities Limited (+56.0 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Canadian Utilities Limited (CU)?
The free-cash-flow yield on the price is 0.72 %: that much free cash flow Canadian Utilities Limited produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Canadian Utilities Limited (CU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Canadian Utilities Limited it is C$27.49 per share (as of Nov 1, 2026), against a price of C$52.35. It is the blended result of 14 valuation models (cash flow, earnings, asset, dividend).
Is Canadian Utilities Limited stock overvalued or undervalued in 2026?
As of Nov 1, 2026, CU trades above its calculated fair value: price C$52.35, fair value C$27.49, a gap of about −47% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CU?
No. The price is what the market pays today (C$52.35); the fair value is what the company's own numbers justify (C$27.49). For Canadian Utilities Limited the two are C$24.86 per share apart. That gap is exactly why we show both numbers side by side.
How much is Canadian Utilities Limited worth?
The market values Canadian Utilities Limited at about C$14.3B (market capitalisation, as of Nov 1, 2026). Per share that is C$52.35; our models calculate a fair value of C$27.49 per share.
What do the bullish and bearish scenarios say about CU?
Our models span a range for Canadian Utilities Limited: cautious scenario C$10.58, base C$27.49, optimistic C$30.20 per share (as of Nov 1, 2026, price C$52.35). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CU?
Canadian Utilities Limited trades at a price-to-earnings ratio of 304.7 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$27.49 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 17.7. Other multiples: PEG 2.6, P/B 2.2, P/S 3.8, EV/EBITDA 13.9.
What is the PEG ratio of CU?
The PEG ratio of Canadian Utilities Limited is 2.64 (P/E divided by earnings growth, as of Nov 1, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Canadian Utilities Limited (CU)?
Balance-sheet figures for Canadian Utilities Limited (as of Nov 1, 2026): return on equity 1.9%, debt of 1.87 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is CU from its 52-week high?
Canadian Utilities Limited trades at C$52.35, about 6% below its 52-week high of C$55.62 and 39% above the low of C$37.55 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of C$27.49 is for.
Which stocks are comparable to Canadian Utilities Limited?
From the same area (Utilities) we also value Iberdrola, S.A, Enel SpA, Engie SA, Sempra, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Canadian Utilities Limited stock attractive at the current price?
The data as of Nov 1, 2026: price C$52.35, calculated fair value C$27.49 (−47%), Quality Score 42/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CU calculated?
We run Canadian Utilities Limited through 14 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of C$27.49, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Canadian Utilities Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Canadian Utilities Limited (CU)?
The closing price on Nov 4, 2026 was C$52.35. Our model-based fair value is C$27.49, about 47% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Canadian Utilities Limited right now?
The price sits above even our optimistic bull case (C$30.20). The favourable scenario is already priced in. Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts. The model range is unusually wide (C$10.58 to C$30.20). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Where does the earnings growth of Canadian Utilities Limited (CU) come from?
Earnings per share at Canadian Utilities Limited grew −3.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +0.8 %, EBIT margin −3.9 %, tax rate +0.6 %, residual (interest, one-offs) −0.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Canadian Utilities Limited
How large is the market capitalisation of Canadian Utilities Limited (CU)?
The market capitalisation of Canadian Utilities Limited is C$14.3B (≈ $10.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Canadian Utilities Limited (CU)?
The price-to-sales ratio of Canadian Utilities Limited is 9.83 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Canadian Utilities Limited (CU)?
Earnings per share at Canadian Utilities Limited are C$0.1600 (price ÷ EPS = P/E 304.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Canadian Utilities Limited (CU)?
The dividend yield of Canadian Utilities Limited is 3.5%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Canadian Utilities Limited (CU)?
The net margin of Canadian Utilities Limited is 3.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Canadian Utilities Limited (CU)?
The return on equity (ROE) of Canadian Utilities Limited is 1.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Canadian Utilities Limited (CU)?
On an EBIT basis the return on assets of Canadian Utilities Limited is 4.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Canadian Utilities Limited (CU)?
The operating margin of Canadian Utilities Limited is 29.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Canadian Utilities Limited (CU)?
Revenue at Canadian Utilities Limited is growing +8.6% versus a year earlier (3y avg −3.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Canadian Utilities Limited (CU)?
Earnings per share at Canadian Utilities Limited are growing +18.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Canadian Utilities Limited (CU) carry?
The net debt of Canadian Utilities Limited is C$11.7B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 1, 2026