DCUE
Dominion Energy, Inc.
$101.61
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 195.1% above fair value
You pay
$101.61
Bear
$30.13
Fair
$34.43
Bull
$38.74
Bear
$30.13
-70.3%
$2.15 × 14x P/E
Fair
$34.43
-66.1%
$2.15 × 16x P/E
Bull
$38.74
-61.9%
$2.15 × 18x P/E
Adjust Assumptions
16.0x
2.15$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
47.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (26 analysts)
$73.00
Divergence from AlphaVal
53%
Summary
Applying a 16x P/E to adjusted EPS of $2.15, the base-case value is $34.43 per share.
Warnings
The company's reported profits differ from official accounting profits by 35767%. Check what costs are being left out of the adjusted number.
The company pays out 120867% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Wall Street's average price target is $73.00 (from 26 analysts). Our estimate is 53% below the consensus -- consider that gap carefully.
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