Hydro One Valuation

H Stock  CAD 59.29  0.62  1.06%   
Currently, Hydro One appears to be fairly valued. Hydro One has a latest Real Value of $57.51 per share. The latest price of Hydro One is $59.29. Our model measures the value of Hydro One from evaluating Hydro One fundamentals such as Return On Equity of 0.11, current valuation of 53.8 B, and Return On Asset of 0.0366 as well as evaluating its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Hydro One's valuation include:
 Price Book
2.7822
 Enterprise Value
53.8 B
 Enterprise Value Ebitda
16.7916
 Price Sales
3.9333
 Forward PE
26.178
Fairly Valued
Today
59.29
Please note that Hydro One's price fluctuation is Very Low at this time. Calculation of the real value of Hydro One is based on 3 months time horizon. Increasing Hydro One's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Hydro One is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hydro Stock. However, Hydro One's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  59.29 Real  57.51 Hype  59.29 Naive  58.99
Assessing the real value of Hydro One stock means looking beyond short-term price movements to its long-term earnings power. Intrinsic value for Hydro One is most commonly estimated through discounted cash flow modeling or earnings-based approaches.
57.50
Real Value
65.22
Upside
Understanding the full range of upside and downside possibilities for Hydro One supports better investment decisions. The contribution of Hydro stock to portfolio performance goes beyond its current earnings power.
Earnings
Estimates
LowProjectedHigh
0.580.610.66
Details
Hype
Prediction
LowEstimatedHigh
58.4859.2960.10
Details
Potential
Annual Dividend
LowForecastedHigh
0.620.620.63
Details
Comparing Hydro One's valuation across multiple methods provides a sanity check. If DCF and relative value analyses converge on a similar estimate, the conviction in Hydro One's fair value is correspondingly higher.
Cash is evolving in line with broader financial reporting trends. Last year, Hydro One recorded Cash of 549 Million. Per market data dated March 13, 2026, Accounts Payable is projected to grow to approximately 372 M, while Change To Account Receivables is moving higher toward about -240.3 M.

Hydro One Cash

327.39 Million

Hydro One Total Value Analysis

From a capital-structure perspective, Hydro One is being framed with enterprise value of 53.8 B, market capitalization of 35.56 B, debt obligations near 19.19 B, and cash resources of 549 M. That snapshot should be treated as one valuation lens rather than as final proof of fair value because the interpretation can shift quickly when financing assumptions change.
  Takeover PriceMarket CapDebt ObligationsCash
53.8 B
35.56 B
19.19 B
549 M

Hydro One Investor Information

About 47.0% of the company shares are held by company insiders. The book value of Hydro One was currently reported as 21.09. The company has Price/Earnings To Growth (PEG) ratio of 2.94. Hydro One last dividend was issued on the 11th of March 2026. Operational scale and capital structure coherence define Hydro One financial characteristics. Operating returns remain positive, suggesting ongoing earnings capacity. Earnings quality, debt coverage, and cash generation are the primary financial strength indicators for Hydro One.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.170.2475
Way Down
Pretty Stable
Operating Income1.5 B2.2 B
Way Down
Slightly volatile

Hydro One Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hydro One has an asset utilization ratio of 22.79 percent. This suggests that the Company is making C$0.23 for each dollar of assets. An increasing asset utilization means that Hydro One is more efficient with each dollar of assets it utilizes for everyday operations.
Macro event markers
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

Hydro One Profitability Analysis

Based on the measurements of profitability obtained from Hydro One's financial statements, Hydro One's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Hydro One's ability to earn profits and add value for shareholders.
 
Net Income  
 First Reported
2009-03-31
 Previous Quarter
421 M
 Current Value
233 M
 Quarterly Volatility
130.1 M
Macro event markers
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Per market data dated March 13, 2026, Gross Profit Margin is projected to grow to 0.35, whereas our analysis places Gross Profit near about 1.5 B following downward revisions.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.350.2475
Significantly Up
Slightly volatile
Net Profit Margin0.10.1481
Way Down
Pretty Stable
Operating Profit Margin0.170.2475
Way Down
Pretty Stable
Pretax Profit Margin0.110.1734
Way Down
Pretty Stable
Return On Assets0.03760.0338
Moderately Up
Very volatile
Return On Equity0.0760.1059
Way Down
Very volatile
Profitability analysis for Hydro One works best when investors review the financial ratios and fundamental drivers that explain how efficiently the business converts revenue, assets, and operating inputs into earnings. These profitability indicators help investors judge how well Hydro One uses its assets to create earnings power and long-term shareholder value.

Hydro One Earnings per Share Projection vs Actual

By analyzing Hydro One's earnings estimates, investors can diagnose trend shifts in analyst expectations and compare EPS projections across timeframes. EPS is most informative when read together with margin stability and cash-flow conversion. EPS forecast analysis for Hydro One is useful, but investors should remember that consensus numbers often reflect a normalized estimate rather than a full reconstruction of every accounting detail. Hydro One is projected to generate 0.61 in earnings per share on 31st of March 2026. Future earnings-per-share expectations are often a key input when investors test valuation assumptions and momentum into the next quarter.
Macro event markers
 
Yuan Drop
 
Covid
 
Interest Hikes

Hydro One Ownership Allocation

Hydro One displays a noticeable amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Insider ownership stands at approximately 47% while institutional investors account for 22%, leaving 30% of the float in public hands.

Hydro One Profitability Analysis

The company reported previous year's revenue of 9.04 B. Net Income was 1.34 B with profit before overhead, payroll, taxes, and interest of 3.35 B.

Hydro One Past Distributions to Stockholders

Valuation analysis for Hydro One should be treated as an ongoing process rather than a one-time answer, especially when investors are trying to understand how the market is pricing this stock. The practical goal is to understand how new information changes the valuation case, not to defend one static estimate after conditions move.

Valuation Framework, Methodology & Assumptions

Hydro One is a large-cap equity in Electric Utilities, Utilities - Regulated Electric, Utilities categories. Cycle exposure impacts valuation range. Hydro One currently trades at P/E of 15.93, P/B of 2.78, P/S of 3.93.

Unless otherwise specified, data for Hydro One is compiled from periodic company reporting and market reference feeds and standardized for comparability. Updates may occur throughout the day. Valuation outputs are model-derived and depend on published assumptions and reference inputs.

This content is curated and reviewed by:

Raphi Shpitalnik - Junior Member of Macroaxis Editorial Board

More Resources for Hydro Stock Analysis

Other Information on Investing in Hydro Stock

Hydro One financial ratios provide valuation context across profits, cash flow, and enterprise value. They help compare Hydro across valuation measures in a consistent way.