Dominion Energy, Inc. (D) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$61.70
PE Ratio (TTM)
21.3x
Intrinsic Value
$66.77
+7.6% margin of safety
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.
Base case
D base case PE valuation
A base case PE valuation for D estimates a fair value of about $66.77 per share, against a current price of $61.7. The model assumes 6.8% annual earnings growth, a 21.06x target PE multiple, and a 10% discount rate.
Intrinsic Value
$66.77
Margin of safety
+7.6%
Expected annual return
+1.6%
Base case assumptions: 6.8% annual earnings growth, 21.06x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-08.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the D PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Dominion Energy, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
21.3x
PEG Ratio
2.16
Earnings Yield
4.75%
ROE (TTM)
8.9%
Revenue/Share (TTM)
$20.83
Dividend Yield
4.33%
Debt/Equity
1.85x
Frequently Asked Questions
What is the PE ratio of D?
The trailing twelve-month PE ratio of D reflects how much investors pay per dollar of Dominion Energy, Inc.'s earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is D overvalued based on PE ratio?
D's PE of 21.3x combined with a PEG ratio of 2.16 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Regulated Electric, a DCF analysis may be more appropriate.
How do I value D stock using PE ratio?
To value Dominion Energy, Inc. using PE: (1) Compare the current PE (21.3x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (2.16) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of D?
D's PEG ratio is 2.16, calculated by dividing the PE ratio (21.3x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for D stock valuation?
PE ratio gives a quick relative read — how D is priced versus Regulated Electric peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See D DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Utilities valuationsP/E and DCF value D with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-08. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.