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How Duke Energy Stock Is Valued Compared to Its Peers

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Nov. 20 2020, Updated 3:51 p.m. ET

Duke Energy

Duke Energy (DUK) is the second-largest utility holding company by market capitalization in the country. Duke Energy stock hasn’t been active for the last few months. So far, the stock has fallen 8% in 2018. Duke Energy has one of the most alluring dividend profiles among its peers. To learn more, read Comparing Duke Energy’s Dividend Yield with Its Peers.

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Valuation

Currently, Duke Energy stock is trading at a PE (price-to-earnings) ratio of 22.0x. Duke Energy’s five-year historical average valuation is ~21x. Duke Energy stock appears to be trading at a premium compared to its historical valuation.

Duke Energy stock is trading at an EV-to-EBITDA valuation multiple of 10.6x—compared to its five-year historical average of 11.0x. As a result, Duke Energy stock seems to be trading at a discount compared to its historical average given its EV-to-EBITDA valuation.

Analysts’ views and target price

Analysts seem to be cautious about Duke Energy (DUK) stock. Of the 17 analysts tracking Duke Energy, nine recommend a “hold,” one recommends a “strong buy,” and four recommend a “buy.” One analyst recommends a “strong sell,” while two recommend a “sell” as of May 9.

Duke Energy stock offers a potential upside of 5% for the next year. Wall Street analysts have given Duke Energy a mean target price of $82.0—compared to its current market price of $77.88.

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