Valuation Analysis of SaskPower

Publication, Crown Corporations, Ian Madsen

Executive Summary

This analysis arrives at approximations of the value of SaskPower, a provincial Crown corporation owned by the government, and thus the citizens and taxpayers, of the province of Saskatchewan. The valuation ranges could be useful in determining the future ownership or use of this asset. Every organization needs to review what it could or should do to serve its clients and whether its present array of assets is appropriate for its strategy and its future operations.

Market-based and intrinsic valuations of SaskPower

The best probable estimate of the total market capitalization, that is, the total value of the company were it to be traded on a public stock exchange, is $1.752-billion to $2.617-billion, with the average of the three key metrics chosen being $2.348-billion. The calculation used to arrive at this range of figures was performed using comparison companies, the closest peers being five Canadian regional power and gas utility companies. However, other independent or renewable energy-oriented Canadian firms and 14 regional (some multi-state) U.S. companies were also used.

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