Dominion Energy, Inc. (D) Stock Valuation — DCF Analysis
Regulated Electric · NYSE
Current Price
$67.91
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Regulated Monopoly Power
Dominion operates as a regulated utility, granting it a de facto monopoly in its service territories. This insulates it from direct competition and ensures a stable customer base.
↑Essential Service Demand
Electricity is a non-discretionary service, meaning demand remains relatively inelastic even during economic downturns. This provides a consistent revenue stream for the company.
↑AI-Driven Power Demand
The burgeoning AI infrastructure requires significant electricity, positioning Dominion to benefit from increased demand. This trend offers a growth avenue beyond traditional utility services.
INVESTMENT RISKS
↓Regulatory Scrutiny & Rate Cases
As a regulated entity, Dominion is subject to rate reviews and regulatory approvals. Unfavorable decisions could impact profitability and investment plans.
↓Shareholder Litigation Concerns
Ongoing investigations into potential securities law violations and merger deals raise concerns about corporate governance and potential financial repercussions.
↓Overvaluation Concerns
Despite recent stock declines, the GF Score suggests the stock may still be overvalued. This could limit future upside potential and increase downside risk.
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
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 Stock Valuation Data
Revenue/Share (TTM)
$20.00
FCF/Share (TTM)
$-8.42
ROIC (TTM)
3.5%
ROE (TTM)
10.5%
P/FCF
n/m
EV/EBITDA
14.1x
FCF Yield
-12.38%
Debt/Equity
1.78x
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 $-8.42 in free cash flow per share. At the current price of $67.91, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is D undervalued?
D currently has negative free cash flow, so its P/FCF ratio is not meaningful and cannot tell you whether the stock is cheap or expensive. With cash flow negative, a DCF-based undervalued or overvalued judgment is unreliable — look at the path back to positive cash generation instead.
How do I value D stock using DCF?
To perform a DCF valuation on Dominion Energy, Inc.: (1) Start with the trailing free cash flow per share ($-8.42) 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 1.78x, 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 3.5% suggests the company may face challenges generating returns above 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 1.78x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 14.1x, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.