What Is Drawing Fresh Attention To Fortis (TSX:FTS)?

Fortis (TSX:FTS) is back in focus as investors weigh its regulated earnings profile, current valuation signals that hint at possible undervaluation, and a backdrop of positive insider share buying.

Recent attention on Fortis has come against a backdrop of firm share price momentum, with a 1-month share price return of 8.84% and a year to date share price gain of 15.05%. A 1-year total shareholder return of 20.24% and 5-year total shareholder return of 76.70% point to investors steadily rewarding its regulated earnings profile even as they reassess interest rate and regulatory risks.

Scan beyond Fortis and compare its regulated-utility profile with a curated 9 resilient stocks with low risk scores that features resilient earnings and strong balance sheets in similar rate and regulatory conditions.

That kind of move for a regulated utility like Fortis can signal either a reset in sentiment or a reassessment of the underlying cash generation. Which of these possibilities does the current valuation actually reflect?

Most Popular Narrative: 1% Overvalued

Against Fortis's last close at CA$81.97, the most followed narrative pegs fair value at about CA$80.96. This points to a very modest premium and suggests the recent strength sits within a fairly tight valuation band rather than a stretched one.

The CAD 28.8b multi year capital plan through 2030, supported by record CAD 5.6b invested in 2025 and a further CAD 1.4b in early 2026, continues to underpin Fortis’s outlook for about 7% average annual rate base growth, which feeds into long term growth in regulated revenue and earnings.

Long term opportunities in LNG and gas infrastructure at FortisBC, including the Tilbury LNG Phase 1B expansion, the planned Tilbury 2 project and the Eagle Mountain pipeline, are expected to add regulated rate base, improve system utilization and provide customer bill benefits, which can support revenue growth and help protect net margins.

See why 92 investors see Fortis as 1% overvalued.

Result: Fair Value of CA$80.96 (OVERVALUED)

Still, regulatory lag at UNS Energy and higher funding costs on Fortis’s multi year capital plan could pressure earnings and challenge the current fair value narrative.

Find out about the key risks to this Fortis narrative.

Another View on Fortis: Cash Flows vs Market Pricing

Analysts leaning on earnings multiples see Fortis trading on a P/E of 24.2x, which is richer than both its peer group at 21.5x and the wider North American electric utilities cohort at 19.7x. The fair ratio model points to 30x instead, which implies the market could move either toward that higher bar or back toward sector norms if sentiment cools.

That gap between current P/E, peers, and the fair ratio leaves you with a simple question. Is Fortis priced for comfort or for a bumpier repricing if expectations reset, and which reference point do you trust most: the sector, the peer set, or the fair ratio signal?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fortis for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 4 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals on Fortis can feel confusing. Treat that tension as a prompt to move quickly, review the underlying data, and weigh both sides of the story using the 3 key rewards and 2 important warning signs.

Looking for more Fortis style investment ideas?

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• Target potential opportunities by scanning a curated pool of 8 high quality undiscovered gems that combine solid fundamentals with less crowded investor attention.
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