Dominion Energy, Inc. (D) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$70.55
PE Ratio (TTM)
20.8x
Intrinsic Value
$76.86
+8.2% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Infrastructure
Dominion operates essential electric and gas infrastructure, enjoying exclusive service territories. This regulatory structure limits direct competition for its core services.
↑High Capital Intensity Barrier
Building and maintaining power generation and distribution networks requires immense capital. This high barrier to entry deters new competitors from entering the market.
↑Essential Service Demand
Electricity and natural gas are fundamental needs for households and businesses. This consistent, inelastic demand provides a stable revenue base for Dominion.
INVESTMENT RISKS
↓Interest Rate Sensitivity
As a capital-intensive utility, Dominion relies heavily on debt financing. Rising interest rates increase borrowing costs, impacting earnings and dividend sustainability.
↓Environmental Regulations and Transition
Increasingly stringent environmental regulations and the transition to cleaner energy sources require substantial capital expenditures. Failure to adapt could lead to stranded assets.
↓Execution Risk on Large Projects
Dominion undertakes large-scale infrastructure projects, including renewable energy development. Delays, cost overruns, or regulatory hurdles can negatively impact financial performance.
Base case
D base case PE valuation
A base case PE valuation for D estimates a fair value of about $76.86 per share, against a current price of $70.55. The model assumes 6.8% annual earnings growth, a 21x target PE multiple, and a 10% discount rate.
Intrinsic Value
$76.86
Margin of safety
+8.2%
Expected annual return
+1.7%
Base case assumptions: 6.8% annual earnings growth, 21x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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
Headquartered in Richmond, Virginia, Dominion Energy, Inc., founded in 1983 (and formerly known as Dominion Resources, Inc.), is a prominent American energy firm primarily engaged in the generation and supply of power across the United States. The company's operations are divided into four primary divisions. The Dominion Energy Virginia division is responsible for the regulated production, transmission, and local delivery of electricity, serving an estimated 2.7 million residential, commercial, industrial, and governmental clients throughout Virginia and North Carolina. Its Gas Distribution segment oversees the regulated sale, transport, collection, storage, and local delivery of natural gas. This segment caters to approximately 3.1 million residential, commercial, and industrial customers spread across Ohio, West Virginia, North Carolina, Utah, southwestern Wyoming, and southeastern Idaho. Furthermore, it operates several unregulated facilities dedicated to renewable natural gas production. Within the Dominion Energy South Carolina division, the company provides electricity generation, transmission, and distribution services to roughly 772,000 customers residing in the central, southern, and southwestern regions of South Carolina. Concurrently, it manages natural gas distribution for an additional 419,000 residential, commercial, and industrial consumers within the state. The Contracted Assets segment comprises non-regulated ventures, specifically focusing on the development and operation of long-term contracted renewable electric generation and solar facilities. This segment also includes gas transportation, liquefied natural gas (LNG) import and storage operations, as well as a dedicated liquefaction plant. As of December 31, 2021, Dominion Energy commanded an extensive asset portfolio, featuring approximately 30.2 gigawatts of electricity generating capacity, complemented by 10,700 miles of electric transmission infrastructure, 78,000 miles of electric distribution networks, and 95,700 miles of natural gas distribution mains and associated service lines.
Financial Metrics — D PE Stock Valuation Data
PE Ratio (TTM)
20.8x
PEG Ratio
0.75
Earnings Yield
4.79%
ROE (TTM)
10.5%
Revenue/Share (TTM)
$20.00
Dividend Yield
3.78%
Debt/Equity
1.78x
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 20.8x combined with a PEG ratio of 0.75 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low 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 (20.8x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (0.75) 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 0.75, calculated by dividing the PE ratio (20.8x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.