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Dominion Energy, Inc. (D)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$22.76 - $33.93$28.08
Multi-Stage$36.79 - $40.17$38.45
Blended Fair Value$33.26
Current Price$61.17
Upside-45.62%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-5.58%4.82%2.632.622.592.393.373.502.562.262.021.80
YoY Growth--0.27%1.09%8.50%-29.13%-3.69%36.52%13.15%11.81%12.43%9.87%
Dividend Yield--4.68%5.33%4.63%2.81%4.43%4.84%3.34%3.36%2.61%2.40%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,336.00
(-) Cash Dividends Paid (M)2,269.00
(=) Cash Retained (M)67.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)467.20292.00175.20
Cash Retained (M)67.0067.0067.00
(-) Cash Required (M)-467.20-292.00-175.20
(=) Excess Retained (M)-400.20-225.00-108.20
(/) Shares Outstanding (M)852.95852.95852.95
(=) Excess Retained per Share-0.47-0.26-0.13
LTM Dividend per Share2.662.662.66
(+) Excess Retained per Share-0.47-0.26-0.13
(=) Adjusted Dividend2.192.402.53
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-0.48%0.52%1.52%
Fair Value$22.76$28.08$33.93
Upside / Downside-62.79%-54.10%-44.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,336.002,348.122,360.292,372.532,384.842,397.212,469.12
Payout Ratio97.13%95.71%94.28%92.85%91.43%90.00%92.50%
Projected Dividends (M)2,269.002,247.272,225.262,202.962,180.372,157.492,283.94

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-0.48%0.52%1.52%
Year 1 PV (M)2,039.382,059.872,080.36
Year 2 PV (M)1,832.581,869.601,906.98
Year 3 PV (M)1,646.381,696.511,747.65
Year 4 PV (M)1,478.751,539.091,601.25
Year 5 PV (M)1,327.861,395.931,466.76
PV of Terminal Value (M)23,051.6724,233.3425,462.98
Equity Value (M)31,376.6232,794.3434,265.99
Shares Outstanding (M)852.95852.95852.95
Fair Value$36.79$38.45$40.17
Upside / Downside-39.86%-37.15%-34.32%

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