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Dominion Energy Stock Compared to Its Peers

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Valuation

Dominion Energy (D) is looking fairly expensive compared to its peers and its historical average. Its current EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is 14.0x, while its five-year historical average is below 14.0x. Broader utilities’ (XLU) average valuation multiple is 11.0x.

In comparison, Duke Energy (DUK) is trading at an EV-to-EBITDA multiple of 11.4x, while NextEra Energy (NEE) has a multiple of 13.0x. Dominion Energy appears to be trading at a large premium to its peers.

D stk

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PE multiple

Dominion Energy is trading at a PE (price-to-earnings) multiple of 22.0x, which is higher than the industry average of ~16.0x. Duke Energy’s PE ratio is 21.0x, while NextEra Energy’s ratio is ~18.0x.

Dominion Energy is acquiring SCANA, while California’s Sempra Energy (SRE) is about to close its acquisition of Oncor this year. Read Dominion Energy or Sempra Energy: Which Could Be Stronger? to learn more.

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