EMA.TO
Emera Inc
Price:  
62.09 
CAD
Volume:  
172,974
Canada | Electric Utilities

EMA.TO Fair Value

-65.6 %
Upside

What is the fair value of EMA.TO?

As of 2025-07-06, the Fair Value of Emera Inc (EMA.TO) is 21.34 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 62.09 CAD, the upside of Emera Inc is -65.6%.

Is EMA.TO a good investment?

With the market price of 62.09 CAD and our fair value calculation, Emera Inc (EMA.TO) is not a good investment. Investing in EMA.TO stocks now will result in a potential loss of 65.6%.

62.09 CAD
Stock Price
21.34 CAD
Fair Price
FAIR VALUE CALCULATION

EMA.TO Fair Value

Peter Lynch's formula is:

EMA.TO Fair Value
= Earnings Growth Rate x TTM EPS
EMA.TO Fair Value
= 6.7 x 3.17
EMA.TO Fair Value
= 21.34

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income9835601,0081,044567832
YoY growth38.8%-43%80%3.6%-45.7%6.7%

EMA.TO Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Eversource Energy23,7142.357.2-11.4%
Hydro One Ltd29,305239.61-18.9%
Edison International20,2197.858.8312%
Evergy Inc16,1483.827.97-60.1%
Alliant Energy Corp15,8062.914.5-76.4%
Avangrid Inc13,9362.921.02-41.6%
Pinnacle West Capital Corp10,7964.924.59-72.8%
OGE Energy Corp8,9552.460.335.6%
Idacorp Inc6,2665.627.83-76%
Portland General Electric Co4,5132.833.58-18.5%

EMA.TO Fair Value - Key Data

Market Cap (mil)18,487
P/E19.6x
Forward P/E51x
EPS3.17
Avg earnings growth rate6.7%
TTM earnings943

EMA.TO Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.