Regulated Electric · NYSE
Current Price
$62.50
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Dominion Energy, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Dominion Energy, Inc. produces and distributes energy in the United States. The company operates through four segments: Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, and Contracted Assets. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.7 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The Gas Distribution segment is involved in the regulated natural gas sales, transportation, gathering, storage, and distribution operations in Ohio, West Virginia, North Carolina, Utah, southwestern Wyoming, and southeastern Idaho that serve approximately 3.1 million residential, commercial and industrial customers. It also has nonregulated renewable natural gas facilities in operation. The Dominion Energy South Carolina segment generates, transmits, and distributes electricity to approximately 772,000 customers in the central, southern, and southwestern portions of South Carolina; and distributes natural gas to approximately 419,000 residential, commercial, and industrial customers in South Carolina. The Contracted Assets segment is involved in the nonregulated long-term contracted renewable electric generation and solar generation facility development operations; and gas transportation, LNG import, and storage operations, as well as in the liquefaction facility. As of December 31, 2021, the company's portfolio of assets included approximately 30.2 gigawatt of electric generating capacity; 10,700 miles of electric transmission lines; 78,000 miles of electric distribution lines; and 95,700 miles of gas distribution mains and related service facilities. The company was formerly known as Dominion Resources, Inc. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.
ROIC (TTM)
3.4%
ROE (TTM)
10.8%
FCF Yield
-13.25%
Based on trailing twelve-month data, D shows a free cash flow per share of N/A and a ROIC of 3.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -13.25% are important context metrics when evaluating D's stock valuation relative to peers.
The intrinsic value of D depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether D is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $62.50. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Dominion Energy, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Regulated Electric industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting D's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Dominion Energy, Inc., this means projecting how much free cash flow the Regulated Electric will produce over the next 5-10 years, then discounting those amounts to today's dollars. D's ROIC of 3.4% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For D, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
