Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Hawaiian Electric Industries, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 1.7% to 1.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 54, DPO 28, DIO 60). At a 5.1% WACC with mid-year discounting, the terminal value (104% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.3x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $10.05 per share, suggesting HE is overvalued by 32.2% at the current price of $14.83.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | -14 | -14 | -15 | -15 | -15 | -16 |
| (−) Net Interest | 108 | 115 | 117 | 119 | 121 | 124 |
| (+) D&A | 351 | 358 | 366 | 353 | 364 | 374 |
| EBITDA | 446 | 459 | 469 | 458 | 471 | 482 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 348 | 370 | 378 | 385 | 391 | — |
| (−) ΔWC | 458 | 46 | 18 | 14 | 13 | — |
| Free Cash Flow (FCF) | -360 | 43 | 73 | 59 | 66 | — |
| Peers' EBITDA Multiple | 10.3x | |||||
| Terminal Value | 4,964 | |||||
| WACC / Discount Rate | 5.14% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -352 | 39 | 64 | 50 | 53 | 3,863 |
| Enterprise Value | 3,717 | |||||
| Projection Period | -145 | -3.9% | ||||
| Terminal Value | 3,863 | 103.9% | ||||
| (−) Current Net Debt | 1,978 | |||||
| Equity Value | 1,739 | |||||
| (÷) Outstanding Shares | 173M | |||||
| Fair Price | $10 | -32.2% | ||||
| WACC \ EV/EBITDA Exit Multiple | 6.3x | 8.3x | 10.3x | 12.3x | 14.3x |
|---|---|---|---|---|---|
| 3.1% | $3 | $8 | $12 | $17 | $22 |
| 4.1% | $2 | $7 | $11 | $16 | $20 |
| 5.1% | $1 | $6 | $10 | $14 | $19 |
| 6.1% | $1 | $5 | $9 | $13 | $17 |
| 7.1% | $0 | $4 | $8 | $12 | $16 |
Current price: $14.83. Green = undervalued, Red = overvalued.
Based on default parameters
Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Hawaiian Electric Industries, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 1.7% to 2.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 54, DPO 28, DIO 60). At a 5.1% WACC with mid-year discounting, the terminal value (98% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.3x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $8.59 per share, suggesting HE is overvalued by 42.1% at the current price of $14.83.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit Before Tax | -14 | -14 | -15 | -15 | -15 | -16 | -16 | -16 | -17 | -17 | -18 |
| (−) Net Interest | 108 | 115 | 117 | 119 | 121 | 124 | 127 | 130 | 134 | 137 | 141 |
| (+) D&A | 351 | 358 | 366 | 353 | 364 | 374 | 385 | 393 | 401 | 410 | 420 |
| EBITDA | 446 | 459 | 469 | 458 | 471 | 483 | 496 | 506 | 518 | 530 | 543 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 348 | 370 | 378 | 385 | 391 | 400 | 409 | 419 | 430 | 443 | — |
| (−) ΔWC | 458 | 46 | 18 | 14 | 13 | 18 | 20 | 22 | 24 | 26 | — |
| Free Cash Flow (FCF) | -360 | 43 | 73 | 59 | 66 | 65 | 67 | 66 | 64 | 62 | — |
| Peers' EBITDA Multiple | 10.3x | ||||||||||
| Terminal Value | 5,591 | ||||||||||
| WACC / Discount Rate | 5.14% | ||||||||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5.5 | 6.5 | 7.5 | 8.5 | 9.5 | 5 |
| Present Value of FCF | -352 | 39 | 64 | 50 | 53 | 50 | 48 | 45 | 42 | 38 | 3,385 |
| Enterprise Value | 3,463 | ||||||||||
| Projection Period | 78 | 2.2% | |||||||||
| Terminal Value | 3,385 | 97.8% | |||||||||
| (−) Current Net Debt | 1,978 | ||||||||||
| Equity Value | 1,485 | ||||||||||
| (÷) Outstanding Shares | 173M | ||||||||||
| Fair Price | $9 | -42.1% | |||||||||
| WACC \ EV/EBITDA Exit Multiple | 6.3x | 8.3x | 10.3x | 12.3x | 14.3x |
|---|---|---|---|---|---|
| 3.1% | $4 | $8 | $13 | $18 | $22 |
| 4.1% | $2 | $6 | $11 | $15 | $19 |
| 5.1% | $1 | $5 | $9 | $12 | $16 |
| 6.1% | $0 | $3 | $7 | $10 | $14 |
| 7.1% | $0 | $2 | $5 | $8 | $11 |
Current price: $14.83. Green = undervalued, Red = overvalued.
Based on default parameters
Using the industry peer median P/E Multiples multiple (trailing + forward), Hawaiian Electric Industries, Inc. (HE) has a fair value of $15.49 based on 7 comparable companies in the Diversified Utilities industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Hawaiian Electric Industries, Inc.HE | 2,566 | 20.9x | 13.9x |
| Otter Tail Corporation | 3,693 | 13.4x | 15.5x |
| Centuri Holdings, Inc. | 3,485 | 138.1x | 51.5x |
| Avista Corporation | 3,373 | 17.2x | 15.7x |
| MGE Energy, Inc. | 2,707 | 19.8x | 19.8x |
| Northwest Natural Holding Company | 2,123 | 18.2x | 16.5x |
| H2O America | 2,029 | 19.9x | 21.1x |
| Unitil Corporation | 917 | 17.2x | 16.5x |
| Industry Median | 18.2x | 16.5x | |
| (*) Profit after tax | 126 | 185 | |
| Equity Value | 2,299 | 3,061 | |
| (/) Outstanding shares | 173 | 173 | |
| Fair Price | $13 | $18 | |
Using the industry peer median EV/EBITDA multiple (trailing + forward), Hawaiian Electric Industries, Inc. (HE) has a fair value of $20.47 based on 7 comparable companies in the Diversified Utilities industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| Hawaiian Electric Industries, Inc.HE | 2,566 | 8.4x | 8.3x |
| Otter Tail Corporation | 3,693 | 9.5x | 9.4x |
| Centuri Holdings, Inc. | 3,485 | 15.9x | 13.5x |
| Avista Corporation | 3,373 | 10.3x | 10.0x |
| MGE Energy, Inc. | 2,707 | 11.9x | 12.1x |
| Northwest Natural Holding Company | 2,123 | 10.3x | 9.5x |
| H2O America | 2,029 | 12.4x | 11.2x |
| Unitil Corporation | 917 | 9.3x | 9.6x |
| Industry Median | 10.3x | 10.0x | |
| (*) EBITDA | 539 | 549 | |
| = Enterprise Value | 5,551 | 5,488 | |
| (-) Net Debt | 1,978 | 1,978 | |
| Equity Value | 3,573 | 3,510 | |
| (/) Outstanding shares | 173 | 173 | |
| Fair Price | $21 | $20 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), Hawaiian Electric Industries, Inc. (HE) has a fair value of $50.58 based on 7 comparable companies in the Diversified Utilities industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Hawaiian Electric Industries, Inc.HE | 2,566 | 1.5x | 1.4x |
| Otter Tail Corporation | 3,693 | 3.4x | 3.3x |
| Centuri Holdings, Inc. | 3,485 | 1.3x | 1.1x |
| Avista Corporation | 3,373 | 3.4x | 3.3x |
| MGE Energy, Inc. | 2,707 | 4.9x | 5.0x |
| Northwest Natural Holding Company | 2,123 | 3.8x | 3.5x |
| H2O America | 2,029 | 5.0x | 4.5x |
| Unitil Corporation | 917 | 3.4x | 3.6x |
| Industry Median | 3.4x | 3.5x | |
| (*) Revenue | 3,087 | 3,139 | |
| = Enterprise Value | 10,597 | 10,862 | |
| (-) Net Debt | 1,978 | 1,978 | |
| Equity Value | 8,619 | 8,884 | |
| (/) Outstanding shares | 173 | 173 | |
| Fair Price | $50 | $51 | |
Using the PEG framework with historical EPS growth of 8.0%, the company has a fair value of $5.68 based on TTM EPS (FY2025) of $0.71.
| EPS Growth RateHistorical | -25.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| TTM EPS (FY2025) | $0.71 |
| Fair Value | $5.68 |
No analyst estimates available.
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $246.2M | $2.25 | — |
| FY2022 | $241.1M | $2.20 | -2.2% |
| FY2023 | $199.2M | $1.81 | -17.7% |
| FY2024 | $-1.4B | $-11.23 | -720.4% |
| FY2025 | $126.3M | $0.71 | — |
4Y Historical EPS CAGR: -25.1%
Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.8% and projected dividend growth of 0.0%, the fair value is $3.57 per share. The DDM range is $2.59 – $6.28 based on sensitivity analysis across Cost of Equity and growth rate assumptions.
| Year | DPS | Payout Ratio | YoY Growth |
|---|---|---|---|
| 2025 | — | 0.0% | -100.0% |
| 2024 | $0.20 | — | -69.5% |
| 2023 | $0.67 | 37.1% | -41.4% |
| 2022 | $1.15 | 52.2% | -15.5% |
| 2021 | $1.36 | 60.4% | — |
| Year | Projected DPS | Growth | Discount Factor | Present Value |
|---|---|---|---|---|
| 2026 | $0.20 | 0.0% | 0.9279 | $0.19 |
| 2027 | $0.20 | 0.0% | 0.8611 | $0.18 |
| 2028 | $0.20 | 0.0% | 0.7990 | $0.16 |
| 2029 | $0.20 | 0.0% | 0.7414 | $0.15 |
| 2030 | $0.20 | 0.0% | 0.6880 | $0.14 |
| Terminal Value | $0.21 DPS | 2.5% | $2.74 |
Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.
| Ke \ Growth | 0.0% | 0.0% | 0.0% | 1.0% | 2.0% |
|---|---|---|---|---|---|
| 5.8% | $6 | $6 | $6 | $6 | $6 |
| 6.8% | $4 | $4 | $4 | $5 | $5 |
| 7.8% | $4 | $4 | $4 | $4 | $4 |
| 8.8% | $3 | $3 | $3 | $3 | $3 |
| 9.8% | $3 | $3 | $3 | $3 | $3 |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.