Dominion Energy (NYSE:D) Valuation: Weighing Nuclear Progress, Data Center Expansion, and Insider Buying

Dominion Energy (NYSE:D) is making headlines as it advances its nuclear power strategy, including a new agreement with Amazon to explore small modular reactor generation at its North Anna facility. The company has also nearly doubled its data center power capacity contracts in Northern Virginia over the past six months. This move ties in with strong earnings growth and increased insider buying seen recently.

See our latest analysis for Dominion Energy.

Momentum is building for Dominion Energy after the company’s latest nuclear power advances. The 1-year total shareholder return has climbed to 13.6%. The positive mood is echoed in management’s recent insider buying and expansion moves, leading to a 12% year-to-date share price return and over 6% gain in the past 90 days.

If Dominion’s turnaround has your attention, it might be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With Dominion’s stock not far from analyst targets, recent growth and nuclear advances may appear compelling. However, is all the optimism already reflected in the current share price, or is there still a genuine buying opportunity?

Most Popular Narrative: 0.7% Undervalued

Dominion Energy’s last close at $60.97 sits almost exactly at the narrative fair value of $61.42, suggesting that analysts see limited upside at current prices. The fair value is grounded in careful projections for shareholder returns and future earnings that reflect both the company's transition ambitions and sector realities.

*Large-scale investments in regulated renewables, especially the Coastal Virginia Offshore Wind (CVOW) project, position Dominion to benefit from the accelerating energy transition, earning stable regulated returns and expanding rate base, with a positive impact on long-term earnings.*

Read the complete narrative.

Want the whole story? The secret sauce behind this valuation includes bold forecasts for future profitability and regulatory tailwinds that could redefine Dominion’s role in the utilities space. There’s more to the consensus narrative than meets the eye. Are you ready to see what shifts the fair value to the current price target?

Result: Fair Value of $61.42 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, major project cost overruns or regulatory setbacks could quickly challenge this fair value narrative and reduce the company's long-term earnings visibility.

Find out about the key risks to this Dominion Energy narrative.

Another View: What Does the SWS DCF Model Suggest?

For a different angle, our SWS DCF model estimates Dominion Energy’s fair value at $37.75, which is much lower than the current share price of $60.97. This method suggests the stock could be overvalued if future cash flows do not meet optimistic industry projections. Will the market’s expectations remain steady, or is there hidden downside risk?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Dominion Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Dominion Energy Narrative

If the consensus isn’t quite your perspective or you want to run the numbers yourself, you can create a custom narrative in just a few minutes with Do it your way

A great starting point for your Dominion Energy research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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