Black Hills

OVERVALUEDBKH · NYSE · Utilities
BKH·NYSE·Utilities
OVERVALUED
Black Hills
10.2%downside
MARKET PRICE
$74.77
FAIR PRICE
$67.14
MARGIN
$7.63
UNDERVALUEDFAIROVERVALUED
P/E RATIO
19.0x
DIV. YIELD
3.63%
ROE
7.8%
MARKET CAP
$6B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

10.2%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$74.77

FAIR PRICE

$67.14

MARGIN

$7.63

UNDERVALUEDFAIROVERVALUED

P/E Ratio

19.0x

What is P/E? →

Div. Yield

3.63%

ROE

7.8%

Average

Market Cap

$6B

Mid-cap

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FPI RATING

5.9/ 10

Strong profitability and consistent growth trajectory, but elevated debt levels and below-average fundamental quality.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$53.71CONSERVATIVE ENTRY
$67.14FAIR PRICE
$74.77MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$53.71

Fair price × 0.80

DISTANCE

28.2%

Price to entry level

At the current price of $74.77, BKH trades 28.2% above the conservative entry level of $53.71. This entry level represents a 20% margin of safety below the calculated fair price of $67.14 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate BKH's fair price

Black Hills's fair price of $67.14 is derived from a blended model that combines DCF analysis (50%), relative valuation against Utilities peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $74.77, BKH trades 10.2% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting BKH's risk profile.

RELATIVE · 30%

Comparing BKH's valuation multiples against Utilities peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for BKH, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate BKH's fair value with your own inputs.

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FAQ

What is the fair price of BKH?+

Based on our blended model combining DCF analysis (50%), relative valuation against Utilities peers (30%), and analyst consensus (20%), the fair price for Black Hills is $67.14. At the current market price of $74.77, BKH trades 10.2% above its calculated fair value.

Is BKH overvalued or undervalued?+

Black Hills is currently overvalued based on our valuation model. The stock trades at $74.77, which is 10.2% above the fair price of $67.14. The P/E ratio of 19.0x is a key metric in the valuation.

What is the margin of safety for BKH?+

With a 20% margin of safety applied to the fair price of $67.14, the conservative entry level for BKH is $53.71. At the current market price of $74.77, the stock trades 28.2% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is BKH's fair price updated?+

We update fair price calculations for BKH daily after market close. The current fair price of $67.14 incorporates the latest market data and sector multiples.

What factors affect BKH's fair price calculation?+

BKH's fair price of $67.14 is derived from DCF analysis (50% weight), relative valuation against Utilities peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 19.0x, ROE of 7.8%, and dividend yield of 3.63%.

Is BKH a good buy right now?+

At $74.77, BKH trades 10.2% above our fair value estimate of $67.14. The stock is currently overvalued. ROE stands at 7.8% (average). Fair Price Index provides valuation data — always do your own research before investing.

Does BKH pay dividends?+

BKH has a dividend yield of 3.63%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.