Is CNTHN Stock Undervalued?
A comprehensive valuation analysis of Connecticut Light & Power Co (CNTHN) examining current multiples, intrinsic value, and comparing to analyst expectations.
Valuation Verdict
Potentially Undervalued
15620332046.4% upside potential
Based on our analysis, Connecticut Light & Power Co appears to be potentially undervalued at the current price of $40.31. Our fair value estimate of $6296555888.22 suggests upside potential of approximately 15620332046.4%.
Current Valuation Metrics
Valuation ratios help us understand how the market is pricing CNTHN relative to its fundamentals. Let's examine the key multiples investors are paying today.
Understanding the Metrics
- P/E Ratio: At 0.54x earnings, CNTHN is trading below the typical market average of 15-20x.
- P/B Ratio: Book value data not available.
- P/S Ratio: The price-to-sales ratio of 0.05 indicates how much investors value each dollar of revenue.
- EV/EBITDA: EBITDA data not available.
Fair Value Estimate
Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Connecticut Light & Power Co stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.
Our DCF model suggests CNTHN may be undervalued by approximately 15620332046.4%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.
Investment Conclusion
Bottom Line
Based on our comprehensive valuation analysis, Connecticut Light & Power Co (CNTHN) appears to be undervalued at $40.31. With a fair value estimate of $6296555888.22, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.
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