DUKU
Duke Energy Corporation Units 1.08.29
$49.93
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 50.5% below fair value
You pay
$49.93
Bear
$88.34
Fair
$100.96
Bull
$113.58
Bear
$88.34
+76.9%
$6.31 × 14x P/E
Fair
$100.96
+102.2%
$6.31 × 16x P/E
Bull
$113.58
+127.5%
$6.31 × 18x P/E
Adjust Assumptions
16.0x
6.31$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
7.9x
Summary
Applying a 16x P/E to adjusted EPS of $6.31, the base-case value is $100.96 per share.
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