DCUE
Dominion Energy, Inc.
$101.61
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 189.2% above fair value
You pay
$101.61
Bear
$30.74
Fair
$35.14
Bull
$39.53
Bear
$30.74
-69.7%
$2.20 × 14x P/E
Fair
$35.14
-65.4%
$2.20 × 16x P/E
Bull
$39.53
-61.1%
$2.20 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
46.3x
Summary
Applying a 16x P/E to adjusted EPS of $2.20, the base-case value is $35.14 per share.
Warnings
The company's reported profits differ from official accounting profits by 36500%. Check what costs are being left out of the adjusted number.
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