Is CNTHN Stock Undervalued?

A comprehensive valuation analysis of Connecticut Light & Power Co (CNTHN) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

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.

P/E Ratio
0.54
Low
P/B Ratio
N/A
P/S Ratio
0.05
Low
EV/EBITDA
N/A

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.

Current Price
$40.31
vs
Fair Value Estimate
$6296555888.22
Implied Return+15620332046.4%

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.

Compare with Peers

See how Connecticut Light & Power Co stacks up against similar companies

Popular Valuation Analysis

Explore valuation analysis for top stocks