As of June 6, 2025, Dominion Energy Inc's estimated intrinsic value ranges from $46.94 to $116.64 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $46.94 | -16.2% |
| Discounted Cash Flow (5Y) | $55.59 | -0.7% |
| Dividend Discount Model (Multi-Stage) | $52.65 | -6.0% |
| Dividend Discount Model (Stable) | $55.48 | -0.9% |
| Earnings Power Value | $116.64 | +108.3% |
Is Dominion Energy Inc (D) undervalued or overvalued?
With the current market price at $56.00, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Dominion Energy Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.39 | 0.43 |
| Cost of equity | 5.7% | 7.2% |
| Cost of debt | 4.0% | 5.1% |
| Tax rate | 10.1% | 11.9% |
| Debt/Equity ratio | 0.86 | 0.86 |
| After-tax WACC | 4.7% | 6.0% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $56 | $91,120M | 85.1% |
| 10-Year Growth | $47 | $83,747M | 71.2% |
| 5-Year EBITDA | $46 | $83,156M | 83.7% |
| 10-Year EBITDA | $49 | $85,506M | 71.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $7,541M |
| Discount Rate (WACC) | 6.0% - 4.7% |
| Enterprise Value | $126,526M - $159,771M |
| Net Debt | $43,748M |
| Equity Value | $82,778M - $116,023M |
| Outstanding Shares | 852M |
| Fair Value | $97 - $136 |
| Selected Fair Value | $116.64 |
| Metric | Value |
|---|---|
| Market Capitalization | $47724M |
| Enterprise Value | $91472M |
| Trailing P/E | 22.77 |
| Forward P/E | 22.84 |
| Trailing EV/EBITDA | 6.60 |
| Current Dividend Yield | 465.68% |
| Dividend Growth Rate (5Y) | -6.04% |
| Debt-to-Equity Ratio | 0.86 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $14.08 |
| Discounted Cash Flow (5Y) | 25% | $13.90 |
| Dividend Discount Model (Multi-Stage) | 20% | $10.53 |
| Dividend Discount Model (Stable) | 15% | $8.32 |
| Earnings Power Value | 10% | $11.66 |
| Weighted Average | 100% | $58.49 |
Based on our comprehensive valuation analysis, Dominion Energy Inc's weighted average intrinsic value is $58.49, which is approximately 4.5% above the current market price of $56.00.
Key investment considerations:
Given these factors, we believe Dominion Energy Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.