Latest Ratios: P/E Ratio 23.9x · EV/EBITDA 13.6x · ROE 7.0%. (1995–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $29.5B | $27.5B | $20.6B | $20.0B | $19.2B | $22.8B | $18.6B | $18.9B | $14.2B | $15.3B | $9.7B |
| Enterprise Value | $54.0B | $61.8B | $54.1B | $49.4B | $48.0B | $48.6B | $43.2B | $41.7B | $38.6B | $37.1B | $32.2B |
| P/E Ratio → | 23.89 | 15.28 | 12.83 | 13.27 | 14.40 | 18.49 | 15.35 | 11.41 | 12.18 | 15.87 | 16.34 |
| P/S Ratio | 3.40 | 2.26 | 1.79 | 1.74 | 1.74 | 2.41 | 2.08 | 2.15 | 1.69 | 1.84 | 1.42 |
| P/B Ratio | 1.66 | 1.06 | 0.80 | 0.86 | 0.84 | 1.09 | 0.92 | 0.94 | 0.77 | 0.91 | 0.59 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 10.18 | 6.77 | 5.30 | 5.64 | 6.24 | 7.83 | 6.87 | 9.19 | 5.45 | 5.54 | 5.14 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.08 | 4.70 | 4.29 | 4.35 | 5.14 | 4.83 | 4.75 | 4.61 | 4.47 | 4.71 |
| EV / EBITDA | 13.64 | 11.14 | 10.36 | 10.17 | 10.89 | 12.22 | 10.97 | 9.51 | 10.71 | 10.04 | 13.07 |
| EV / EBIT | 21.67 | 16.12 | 15.10 | 14.64 | 16.53 | 18.38 | 16.22 | 13.14 | 15.93 | 14.99 | 20.98 |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.3% | 72.3% | 71.8% | 67.3% | 64.2% | 68.8% | 71.3% | 71.3% | 43.0% | 71.6% | 65.8% |
| Operating Margin | 28.7% | 28.7% | 28.6% | 26.8% | 24.8% | 26.1% | 28.1% | 34.6% | 28.2% | 30.2% | 21.7% |
| Net Profit Margin | 14.8% | 14.8% | 14.6% | 13.7% | 12.6% | 13.7% | 14.3% | 19.6% | 13.9% | 12.4% | 9.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.0% | 7.0% | 6.8% | 6.8% | 6.4% | 6.3% | 6.3% | 8.9% | 6.6% | 6.2% | 4.9% |
| ROA | 2.4% | 2.4% | 2.4% | 2.4% | 2.3% | 2.3% | 2.3% | 3.2% | 2.3% | 2.1% | 1.7% |
| ROIC | 4.4% | 4.4% | 4.4% | 4.4% | 4.2% | 4.0% | 4.3% | 5.3% | 4.4% | 4.9% | 3.6% |
| ROCE | 5.2% | 5.2% | 5.2% | 5.2% | 5.0% | 4.7% | 5.0% | 6.2% | 5.1% | 5.7% | 4.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.34 | 1.34 | 1.30 | 1.29 | 1.27 | 1.24 | 1.23 | 1.15 | 1.34 | 1.32 | 1.39 |
| Debt / EBITDA | 6.25 | 6.25 | 6.46 | 6.18 | 6.59 | 6.53 | 6.32 | 5.29 | 6.87 | 6.00 | 9.25 |
| Net Debt / Equity | — | 1.33 | 1.30 | 1.26 | 1.26 | 1.23 | 1.21 | 1.14 | 1.33 | 1.30 | 1.37 |
| Net Debt / EBITDA | 6.18 | 6.18 | 6.42 | 6.05 | 6.54 | 6.50 | 6.26 | 5.21 | 6.78 | 5.91 | 9.14 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 2.59 | 2.59 | 2.55 | 2.59 | 2.64 | 2.63 | 2.55 | 3.07 | 2.49 | 2.70 | 2.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.51 | 0.51 | 0.63 | 0.67 | 0.65 | 0.57 | 0.63 | 0.62 | 0.77 | 0.63 | 0.55 |
| Quick Ratio | 0.42 | 0.42 | 0.52 | 0.58 | 0.55 | 0.47 | 0.53 | 0.52 | 0.67 | 0.53 | 0.45 |
| Cash Ratio | 0.05 | 0.05 | 0.04 | 0.10 | 0.03 | 0.03 | 0.06 | 0.09 | 0.08 | 0.09 | 0.07 |
| Asset Turnover | — | 0.16 | 0.16 | 0.17 | 0.17 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.14 |
| Inventory Turnover | 5.19 | 5.19 | 4.74 | 6.66 | 5.98 | 6.17 | 6.07 | 6.40 | 12.02 | 6.43 | 6.29 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 2.9% | 3.6% | 3.5% | 3.5% | 2.7% | 4.2% | 2.0% | 3.2% | 2.7% | 3.3% |
| Payout Ratio | 43.8% | 43.8% | 44.3% | 44.6% | 48.3% | 47.0% | 61.7% | 22.1% | 39.4% | 40.8% | 47.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 6.5% | 7.8% | 7.5% | 6.9% | 5.4% | 6.5% | 8.8% | 8.2% | 6.3% | 6.1% |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.8% | 2.9% | 3.6% | 3.5% | 3.5% | 2.7% | 4.2% | 2.0% | 3.2% | 2.7% | 3.3% |
| Shares Outstanding | — | $529M | $495M | $487M | $479M | $471M | $455M | $455M | $425M | $416M | $313M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying FTS stock.
Fortis Inc.'s current P/E ratio is 23.9x. The historical average is 16.1x. This places it at the 100th percentile of its historical range.
Fortis Inc.'s current EV/EBITDA is 13.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.6x.
Fortis Inc.'s return on equity (ROE) is 7.0%. The historical average is 8.0%.
Based on historical data, Fortis Inc. is trading at a P/E of 23.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Fortis Inc.'s current dividend yield is 1.83% with a payout ratio of 43.8%.
Fortis Inc. has 72.3% gross margin and 28.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Fortis Inc.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory capital recovery lag
Valuation Anchored by Regulatory Predictability
According to recent market data, Fortis trades at a trailing P/E of 24.29, which appears to reflect a premium valuation driven by its long-standing dividend growth track record rather than immediate earnings acceleration, as investors continue to treat the utility as a defensive bond proxy in volatile markets.
The forward P/E of 16.09 suggests that the market anticipates earnings growth to normalize as the current capital program begins to contribute to the rate base. Investors should monitor whether this valuation premium remains sustainable if interest rates remain elevated, as the dividend yield of 1.8% may struggle to compete with risk-free alternatives.
ROE Stability Amid Regulatory Construct
Based on reported financial statements, Fortis has maintained a consistent earned ROE hovering near 1.7% to 2.0% over the last ten quarters, which suggests that the company is effectively managing regulatory lag and achieving its authorized returns across its diverse North American utility jurisdictions.
The stability of these returns indicates that the regulatory compact remains intact, allowing the company to earn a predictable return on its massive infrastructure investments. Any deviation from this narrow range would warrant further investigation into potential regulatory friction or unexpected cost overruns in the capital program.
Capital Structure Managed for Growth
As reported in recent quarterly filings, the company maintains a debt-to-capital ratio of 0.57, a figure that appears consistent with the capital-intensive nature of regulated utilities and suggests that management is successfully balancing infrastructure funding needs with the maintenance of a stable investment-grade credit profile.
The interest coverage ratio, which has fluctuated between 2.31 and 2.82, indicates that the company possesses sufficient earnings power to service its debt obligations despite the ongoing construction cycle. Investors should monitor this metric closely, as any significant compression in coverage could signal increased sensitivity to future interest rate volatility.
Dividend Sustainability Through Cash Flow
Based on the provided financial data, Fortis maintains a dividend payout ratio that has remained well-contained between 34.9% and 52.7% over the last ten quarters, suggesting that the dividend is comfortably supported by the recurring cash flows generated from its regulated utility asset base.
This payout level provides the company with significant internal funding capacity to support its $25 billion capital plan without excessive reliance on external equity markets. The consistency of these payments, backed by 50 years of increases, appears to be a core pillar of the company's value proposition to institutional investors.
Misapplication of Standard P/E Metrics
As noted in industry research, the P/E ratio is frequently misapplied to Fortis by comparing it to broader industrial benchmarks, which obscures the reality that utility valuations are primarily anchored to interest rate environments and the regulatory authorized ROE rather than cyclical earnings growth expectations.
Analysts should instead focus on the Price-to-Book ratio or the dividend yield relative to Treasury alternatives to better assess the company's valuation. Relying on standard P/E multiples may lead to an incorrect assessment of the company's risk profile, as it ignores the fundamental role of the regulatory compact in stabilizing earnings.