D Fair Value Estimate
$50.9520.3% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Dominion Energy Inc
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
Dominion Resources, Inc. (Dominion), is a producer and transporter of energy. The Company is a provider of electricity, natural gas and related services to customers primarily in the eastern region of the United States Dominion's portfolio of assets includes approximately 27,500 megawatts of generating capacity, 6,300 miles of electric transmission lines, 56,900 miles of electric distribution lines, 11,000 miles of natural gas transmission, gathering and storage pipeline and 21,800 miles of gas distribution pipeline, exclusive of service lines of two inches in diameter or less. Dominion also operates one of the underground natural gas storage systems, with approximately 947 billion cubic feet of storage capacity, and serves nearly six million utility and retail energy customers in 15 states. In July 2013, Dominion Resources Inc acquired three solar-power development projects near Indianapolis, Ind., from Sunrise Energy Ventures.
Did you know?
Carries 195.8x more debt than cash on its balance sheet.
Current Price
$63.94
-0.87%GoodMoat Value
$50.95
20.3% overvaluedProfile
Valuation (TTM)
Market Cap$56.19B
P/E19.02
EV$99.44B
P/B1.93
Shares Out878.79M
P/Sales3.22
Revenue$17.45B
EV/EBITDA12.92
Dominion Energy Inc (D) Valuation
GoodMoat Analysis
Dominion Energy's current price is unfavourable from a value investing perspective. The stock trades at a premium to its GoodMoat Target, offering a negative margin of safety, and its valuation multiples are not compelling given its financial profile.
Read full analysis
Based on the GoodMoat Investment Framework, Dominion Energy (D) does not present an attractive valuation. The primary tool, the DCF-based GoodMoat Target, is $50.95, which is significantly below the current price of $60.66. This results in a negative margin of safety of approximately -19%, placing it firmly in the 'Unfavourable' band (less than 10% MoS). The stock's P/E of 17.4x is not cheap for a regulated utility, especially when considered alongside concerning financial metrics. The company exhibits a negative Free Cash Flow Yield of -14.1%, indicating it is not generating cash for shareholders after capital expenditures, and carries a high Debt/Equity ratio of 1.68. While the dividend yield of 4.4% is notable, the valuation assessment is overshadowed by the lack of a margin of safety and weak cash generation. For a value investor seeking a price below intrinsic value, the current level does not provide that cushion. The stock appears expensive relative to its estimated fair value and underlying financial quality.
D Valuation Metrics
FCF$-7.29B
FCF Growth Rate—
EPS Growth (CAGR)14.11%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →D Valuation & Fair Value Analysis
Dominion Energy Inc (D) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Dominion Energy Inc is $50.95. The current stock price is $63.94, suggesting the stock is 25.5% overvalued.
The price-to-earnings (P/E) ratio is 19.02. Price-to-book ratio is 1.93. Price-to-sales ratio is 3.22. Enterprise value to EBITDA is 12.92. PEG ratio is -1.83.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Dominion Energy Inc's intrinsic value.