Dominion Energy, Inc. (D) Intrinsic Value & DCF Valuation
Regulated Electric · NYSE
Current Price
$62.00
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Regulated Monopoly Infrastructure
Dominion operates essential electric transmission and distribution networks, granting it a de facto monopoly in its service territories. This infrastructure is difficult and costly for competitors to replicate.
↑High Capital Intensity
The electric utility industry requires massive, ongoing capital investment for infrastructure maintenance and upgrades. This creates a significant barrier to entry for new players.
↑Long-Term Contracts and Rate Base
Dominion's earnings are largely derived from regulated rate bases, providing predictable revenue streams and returns approved by state commissions. This offers stability and limits direct competitive pricing pressure.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a capital-intensive utility, Dominion relies heavily on debt financing. Rising interest rates increase borrowing costs, impacting profitability and the cost of new projects.
↓Extreme Weather Events
Dominion's infrastructure is vulnerable to damage from severe weather, such as hurricanes and storms. Repair costs and potential service disruptions can negatively affect financial results.
↓Cybersecurity Threats
The increasing reliance on digital systems for grid management makes Dominion susceptible to cyberattacks. A successful breach could disrupt operations and compromise sensitive data.
Customize the D valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Dominion Energy, Inc. respond.
Open DCF Calculator for DCompany Overview
Dominion Energy, Inc. is an American energy company that provides regulated electricity and natural gas services. It generates, transmits, and distributes electricity to customers in Virginia and the Carolinas, and distributes natural gas to customers in multiple states including South Carolina, Ohio, and Utah. The company's asset portfolio includes electric generation capacity from various sources including renewables, electric transmission and distribution lines, and natural gas infrastructure.
Financial Metrics — D Stock Valuation Data
Revenue/Share (TTM)
$20.83
FCF/Share (TTM)
$-7.76
ROIC (TTM)
3.4%
ROE (TTM)
8.9%
P/FCF
n/m
EV/EBITDA
14.6x
FCF Yield
-12.52%
Debt/Equity
1.85x
D currently has negative free cash flow, so cash-flow ratios such as P/FCF and FCF yield do not give a meaningful read on whether the stock is cheap or expensive. A DCF valuation is unreliable until cash generation turns positive — focus on the path to profitability instead.
Frequently Asked Questions
What is the intrinsic value of D?
Dominion Energy, Inc. currently generates $-7.76 in free cash flow per share. At the current price of $62.00, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is D undervalued?
D currently has negative free cash flow, so its P/FCF ratio is not meaningful and cannot tell you whether the stock is cheap or expensive. With cash flow negative, a DCF-based undervalued or overvalued judgment is unreliable — look at the path back to positive cash generation instead.
How do I value D stock using DCF?
To perform a DCF valuation on Dominion Energy, Inc.: (1) Start with the trailing free cash flow per share ($-7.76) 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 — with a debt-to-equity of 1.85x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to D?
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 company will produce over the next 5-10 years, shaped by Regulated Electric trends, then discounting those amounts to today's dollars. D's ROIC of 3.4% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect D stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For D, with a debt-to-equity ratio of 1.85x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 14.6x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See D PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Utilities valuationsDCF and P/E value D with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.