D
Dominion Energy, Inc.
$67.67
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 11.5% above fair value
You pay
$67.67
Bear
$53.12
Fair
$60.72
Bull
$68.31
Bear
$53.12
-21.5%
$3.61 × 14x P/E
Fair
$60.72
-10.3%
$3.61 × 16x P/E
Bull
$68.31
+0.9%
$3.61 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
18.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $67.50 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $60.72 per share.
Warnings
Dividend-based valuation: $38.52 (below our primary estimate by 33%). Large gaps may signal the dividend doesn't reflect full earning power.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples