DTE
DTE Energy Company
$148.19
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 15.9% above fair value
You pay
$148.19
Bear
$111.87
Fair
$127.85
Bull
$143.83
Bear
$111.87
-24.5%
$7.15 × 14x P/E
Fair
$127.85
-13.7%
$7.15 × 16x P/E
Bull
$143.83
-2.9%
$7.15 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
20.7x
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 $159.43 from 46 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $127.85 per share.
Warnings
Dividend-based valuation: $209.66 (above our primary estimate by 83%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $159.43 (from 46 analysts). Our estimate is 28% 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