Oil & Gas Midstream · NYSE
Current Price
$53.42
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Enbridge Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Enbridge Inc. operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines, and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution and energy transportation activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, and waste heat recovery facilities; and transmission assets in North America and Europe. The Energy Services segment provides energy marketing services to refiners, producers, and other customers; and physical commodity marketing and logistical services in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.
ROIC (TTM)
4.5%
ROE (TTM)
12.3%
FCF Yield
2.06%
Based on trailing twelve-month data, ENB shows a free cash flow per share of N/A and a ROIC of 4.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.06% are important context metrics when evaluating ENB's stock valuation relative to peers.
The intrinsic value of ENB depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ENB is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $53.42. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Enbridge Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Midstream industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ENB's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Enbridge Inc., this means projecting how much free cash flow the Oil & Gas Midstream will produce over the next 5-10 years, then discounting those amounts to today's dollars. ENB's ROIC of 4.5% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ENB, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
