DTE
DTE Energy Company
$126.90
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 12.3% above fair value
You pay
$126.90
Bear
$98.84
Fair
$112.96
Bull
$127.08
Bear
$98.84
-22.1%
$7.06 × 14x P/E
Fair
$112.96
-11.0%
$7.06 × 16x P/E
Bull
$127.08
+0.1%
$7.06 × 18x P/E
Adjust Assumptions
16.0x
7.06$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
18.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (46 analysts)
$152.71
Divergence from AlphaVal
26%
Summary
Applying a 16x P/E to adjusted EPS of $7.06, the base-case value is $112.96 per share. DDM cross-check: $209.66.
Warnings
Dividend-based valuation: $209.66 (above our primary estimate by 86%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $152.71 (from 46 analysts). Our estimate is 26% 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