Duke Energy operates as a regulated utility, granting it exclusive rights to provide electricity in its service territories. This regulatory structure creates a significant barrier to entry for competitors.

↑Essential Infrastructure Ownership

The company owns and maintains vast, critical electricity generation and distribution infrastructure. Replacing this extensive network would be prohibitively expensive and time-consuming for any potential rival.

↑Long-Term Customer Relationships

As a provider of a fundamental necessity, Duke Energy benefits from stable, long-term customer relationships. Switching providers is often complex and costly for consumers, fostering customer retention.

INVESTMENT RISKS

↓Regulatory Uncertainty

Changes in state and federal regulations regarding energy generation, pricing, and environmental standards can significantly impact profitability and operational strategies. New DOE funding mitigates some of this, but future policy shifts remain a concern.

↓Capital Expenditure Demands

Significant ongoing investment is required to maintain and upgrade aging infrastructure and transition to cleaner energy sources. The need for substantial capital can strain financial resources.

↓Extreme Weather Events

Increasingly severe weather patterns can disrupt operations, damage infrastructure, and lead to increased costs for repairs and restoration. While offering energy-saving tips is proactive, the underlying threat of extreme temperatures persists.

Base case

DUK base case PE valuation

A base case PE valuation for DUK estimates a fair value of about $137.37 per share, against a current price of $124.97. The model assumes 6.6% annual earnings growth, a 19x target PE multiple, and a 10% discount rate.

Intrinsic Value

$137.37

Margin of safety

+9.0%

Expected annual return

+1.9%

Base case assumptions: 6.6% annual earnings growth, 19x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

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.

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Or try DCF Valuation for DUK →

Company 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)

18.9x

PEG Ratio

2.14

Earnings Yield

5.29%

ROE (TTM)

9.9%

Revenue/Share (TTM)

$42.79

Dividend Yield

3.41%

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 18.9x combined with a PEG ratio of 2.14 provides a growth-adjusted perspective. A PEG above 2.0 suggests DUK may be richly valued even accounting for growth. 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 (18.9x) against the Regulated Electric median to assess relative pricing, (2) check the PEG ratio (2.14) 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 2.14, calculated by dividing the PE ratio (18.9x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. 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

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P/E and DCF value DUK with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.