Duke Energy Corporation (DUK) Stock Valuation — PE Analysis
Regulated Electric · NYSE
Current Price
$126.14
PE Ratio (TTM)
19.3x
Intrinsic Value
$137.64
+8.4% margin of safety
COMPETITIVE MOAT
↑Regulated Monopoly Infrastructure
Duke Energy operates essential electric and gas infrastructure, granting it a de facto monopoly in its service territories. High capital costs create significant barriers to entry for potential competitors.
↑Essential Service Demand
Electricity and gas are non-discretionary services, ensuring consistent demand regardless of economic cycles. This provides a stable revenue base for the company.
↑Long-Term Contracts and Rate Setting
Regulated utilities operate under long-term contracts and rate-setting mechanisms approved by regulatory bodies. This provides predictability and a degree of pricing power over time.
INVESTMENT RISKS
↓Extreme Weather Events
Severe weather can disrupt operations, cause significant damage to infrastructure, and lead to substantial repair costs and potential service interruptions. This can impact reliability and financial performance.
↓Cybersecurity Threats
As a critical infrastructure provider, Duke Energy is a target for cyberattacks that could disrupt operations, compromise sensitive data, and lead to significant financial and reputational damage.
↓Interest Rate Sensitivity
Utilities are capital-intensive businesses with significant debt. Rising interest rates increase borrowing costs, impacting profitability and the ability to finance new projects.
Base case
DUK base case PE valuation
A base case PE valuation for DUK estimates a fair value of about $137.64 per share, against a current price of $126.14. The model assumes 6.6% annual earnings growth, a 19x target PE multiple, and a 10% discount rate.
Intrinsic Value
$137.64
Margin of safety
+8.4%
Expected annual return
+1.8%
Base case assumptions: 6.6% annual earnings growth, 19x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 DUK PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Duke Energy Corporation respond.
Open PE Calculator for DUKCompany Overview
Duke Energy Corporation, an energy provider operating across the United States with its various affiliates, structures its operations into three primary divisions: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure division is responsible for generating, transmitting, distributing, and retailing electricity across the Carolinas, Florida, and the Midwestern states. Its power generation relies on a diverse portfolio of fuel sources, including coal, hydroelectric, natural gas, oil, renewable technologies, and nuclear energy. Beyond direct retail sales, it also provides electricity at wholesale rates to various entities such as municipalities, electric cooperative utilities, and other load-serving organizations. This segment caters to approximately 8.2 million customers spanning six states within the Southeastern and Midwestern U.S., encompassing a service area of about 91,000 square miles, and boasts an impressive generating capacity of approximately 50,259 megawatts. The Gas Utilities and Infrastructure segment focuses on the distribution of natural gas to a broad customer base, including residential homes, commercial enterprises, industrial facilities, and power generation plants. It also manages, operates, and invests in essential pipeline transmission networks and natural gas storage facilities. This segment serves around 1.6 million customers in total, with roughly 1.1 million located in North Carolina, South Carolina, and Tennessee, and an additional 550,000 customers in southwestern Ohio and northern Kentucky. Through its Commercial Renewables division, Duke Energy is actively involved in the acquisition, development, construction, ownership, and operation of wind and solar power projects. This includes offering non-regulated renewable energy and energy storage solutions to a variety of clients, such as utility companies, electric cooperatives, municipal governments, and corporate entities. The division's portfolio comprises 23 wind farms, 178 solar installations, two battery storage sites, and 71 fuel cell locations, totaling a substantial capacity of 3,554 MW spread across 22 different states. Established in 1904, the company was initially known as Duke Energy Holding Corp. before adopting its current name, Duke Energy Corporation, in April 2005. Its corporate headquarters are situated in Charlotte, North Carolina.
Financial Metrics — DUK PE Stock Valuation Data
PE Ratio (TTM)
19.3x
PEG Ratio
2.19
Earnings Yield
5.24%
ROE (TTM)
9.9%
Revenue/Share (TTM)
$42.79
Dividend Yield
3.38%
Debt/Equity
1.67x
Frequently Asked Questions
What is the PE ratio of DUK?
The trailing twelve-month PE ratio of DUK reflects how much investors pay per dollar of Duke Energy Corporation's earnings. This metric is most useful when compared to Regulated Electric peers and the company's own historical range.
Is DUK overvalued based on PE ratio?
DUK's PE of 19.3x combined with a PEG ratio of 2.19 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 DUK stock using PE ratio?
To value Duke Energy Corporation using PE: (1) Compare the current PE (19.3x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (2.19) 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 DUK?
DUK's PEG ratio is 2.19, calculated by dividing the PE ratio (19.3x) 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 DUK stock valuation?
PE ratio gives a quick relative read — how DUK 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 DUK 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 DUK with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.