DCUE
Dominion Energy, Inc.
$101.61
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 93.5% above fair value
You pay
$101.61
Bear
$45.95
Fair
$52.51
Bull
$59.07
Bear
$45.95
-54.8%
$2.86 × 14x P/E
Fair
$52.51
-48.3%
$2.86 × 16x P/E
Bull
$59.07
-41.9%
$2.86 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
35.6x
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 $73.00 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $52.51 per share.
Warnings
The company's reported profits differ from official accounting profits by 47487%. 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 37% 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