Intrinsic value of Dominion Energy - D

Previous Close

$70.62

  Intrinsic Value

$27.18

stock screener

  Rating & Target

str. sell

-62%

Previous close

$70.62

 
Intrinsic value

$27.18

 
Up/down potential

-62%

 
Rating

str. sell

We calculate the intrinsic value of D stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 46.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.80
  9.32
  8.89
  8.50
  8.15
  7.83
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
Revenue, $m
  13,819
  15,107
  16,450
  17,848
  19,303
  20,815
  22,387
  24,020
  25,717
  27,481
  29,316
  31,223
  33,207
  35,273
  37,424
  39,665
  42,001
  44,437
  46,979
  49,633
  52,404
  55,299
  58,326
  61,490
  64,800
  68,263
  71,888
  75,683
  79,658
  83,821
Variable operating expenses, $m
  5,576
  6,036
  6,515
  7,014
  7,534
  8,074
  8,635
  9,218
  9,824
  10,454
  10,469
  11,150
  11,859
  12,596
  13,364
  14,165
  14,999
  15,869
  16,777
  17,724
  18,714
  19,748
  20,829
  21,959
  23,141
  24,378
  25,672
  27,027
  28,447
  29,933
Fixed operating expenses, $m
  3,475
  3,551
  3,629
  3,709
  3,791
  3,874
  3,959
  4,047
  4,136
  4,227
  4,320
  4,415
  4,512
  4,611
  4,712
  4,816
  4,922
  5,030
  5,141
  5,254
  5,370
  5,488
  5,609
  5,732
  5,858
  5,987
  6,119
  6,253
  6,391
  6,531
Total operating expenses, $m
  9,051
  9,587
  10,144
  10,723
  11,325
  11,948
  12,594
  13,265
  13,960
  14,681
  14,789
  15,565
  16,371
  17,207
  18,076
  18,981
  19,921
  20,899
  21,918
  22,978
  24,084
  25,236
  26,438
  27,691
  28,999
  30,365
  31,791
  33,280
  34,838
  36,464
Operating income, $m
  4,769
  5,521
  6,306
  7,125
  7,978
  8,867
  9,792
  10,755
  11,757
  12,800
  14,527
  15,658
  16,837
  18,066
  19,347
  20,684
  22,080
  23,538
  25,061
  26,654
  28,320
  30,064
  31,888
  33,799
  35,801
  37,899
  40,098
  42,403
  44,820
  47,356
EBITDA, $m
  7,689
  8,653
  9,659
  10,709
  11,802
  12,940
  14,125
  15,357
  16,639
  17,973
  19,362
  20,808
  22,314
  23,883
  25,519
  27,226
  29,007
  30,867
  32,809
  34,840
  36,963
  39,184
  41,508
  43,941
  46,488
  49,157
  51,954
  54,885
  57,958
  61,180
Interest expense (income), $m
  905
  2,015
  2,337
  2,666
  3,009
  3,366
  3,738
  4,124
  4,526
  4,943
  5,377
  5,827
  6,296
  6,783
  7,290
  7,818
  8,368
  8,940
  9,537
  10,160
  10,809
  11,487
  12,195
  12,935
  13,709
  14,517
  15,363
  16,248
  17,174
  18,144
  19,159
Earnings before tax, $m
  2,754
  3,184
  3,640
  4,116
  4,612
  5,129
  5,668
  6,230
  6,814
  7,424
  8,700
  9,362
  10,054
  10,775
  11,529
  12,316
  13,139
  14,001
  14,902
  15,845
  16,833
  17,868
  18,953
  20,091
  21,284
  22,536
  23,850
  25,229
  26,677
  28,197
Tax expense, $m
  743
  860
  983
  1,111
  1,245
  1,385
  1,530
  1,682
  1,840
  2,004
  2,349
  2,528
  2,714
  2,909
  3,113
  3,325
  3,548
  3,780
  4,023
  4,278
  4,545
  4,824
  5,117
  5,425
  5,747
  6,085
  6,439
  6,812
  7,203
  7,613
Net income, $m
  2,010
  2,324
  2,657
  3,005
  3,367
  3,744
  4,138
  4,548
  4,974
  5,419
  6,351
  6,834
  7,339
  7,866
  8,416
  8,991
  9,592
  10,220
  10,878
  11,567
  12,288
  13,044
  13,836
  14,666
  15,537
  16,451
  17,410
  18,417
  19,474
  20,584

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  84,265
  92,118
  100,306
  108,831
  117,700
  126,921
  136,505
  146,464
  156,813
  167,570
  178,753
  190,383
  202,483
  215,078
  228,194
  241,859
  256,103
  270,958
  286,458
  302,638
  319,536
  337,191
  355,645
  374,940
  395,123
  416,240
  438,343
  461,484
  485,717
  511,101
Adjusted assets (=assets-cash), $m
  84,265
  92,118
  100,306
  108,831
  117,700
  126,921
  136,505
  146,464
  156,813
  167,570
  178,753
  190,383
  202,483
  215,078
  228,194
  241,859
  256,103
  270,958
  286,458
  302,638
  319,536
  337,191
  355,645
  374,940
  395,123
  416,240
  438,343
  461,484
  485,717
  511,101
Revenue / Adjusted assets
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
  0.164
Average production assets, $m
  60,626
  66,276
  72,167
  78,300
  84,681
  91,316
  98,211
  105,376
  112,822
  120,561
  128,607
  136,975
  145,680
  154,742
  164,178
  174,009
  184,258
  194,946
  206,097
  217,739
  229,896
  242,598
  255,875
  269,757
  284,278
  299,472
  315,374
  332,023
  349,458
  367,721
Working capital, $m
  1,050
  1,148
  1,250
  1,356
  1,467
  1,582
  1,701
  1,826
  1,955
  2,089
  2,228
  2,373
  2,524
  2,681
  2,844
  3,015
  3,192
  3,377
  3,570
  3,772
  3,983
  4,203
  4,433
  4,673
  4,925
  5,188
  5,464
  5,752
  6,054
  6,370
Total debt, $m
  43,270
  49,365
  55,718
  62,334
  69,216
  76,372
  83,809
  91,537
  99,568
  107,915
  116,593
  125,618
  135,008
  144,782
  154,959
  165,563
  176,617
  188,144
  200,172
  212,728
  225,841
  239,541
  253,861
  268,834
  284,496
  300,883
  318,035
  335,992
  354,798
  374,496
Total liabilities, $m
  65,389
  71,484
  77,837
  84,453
  91,335
  98,491
  105,928
  113,656
  121,687
  130,034
  138,712
  147,737
  157,127
  166,901
  177,078
  187,682
  198,736
  210,263
  222,291
  234,847
  247,960
  261,660
  275,980
  290,953
  306,615
  323,002
  340,154
  358,111
  376,917
  396,615
Total equity, $m
  18,875
  20,634
  22,468
  24,378
  26,365
  28,430
  30,577
  32,808
  35,126
  37,536
  40,041
  42,646
  45,356
  48,177
  51,115
  54,176
  57,367
  60,695
  64,167
  67,791
  71,576
  75,531
  79,664
  83,987
  88,507
  93,238
  98,189
  103,372
  108,801
  114,487
Total liabilities and equity, $m
  84,264
  92,118
  100,305
  108,831
  117,700
  126,921
  136,505
  146,464
  156,813
  167,570
  178,753
  190,383
  202,483
  215,078
  228,193
  241,858
  256,103
  270,958
  286,458
  302,638
  319,536
  337,191
  355,644
  374,940
  395,122
  416,240
  438,343
  461,483
  485,718
  511,102
Debt-to-equity ratio
  2.290
  2.390
  2.480
  2.560
  2.630
  2.690
  2.740
  2.790
  2.830
  2.880
  2.910
  2.950
  2.980
  3.010
  3.030
  3.060
  3.080
  3.100
  3.120
  3.140
  3.160
  3.170
  3.190
  3.200
  3.210
  3.230
  3.240
  3.250
  3.260
  3.270
Adjusted equity ratio
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,010
  2,324
  2,657
  3,005
  3,367
  3,744
  4,138
  4,548
  4,974
  5,419
  6,351
  6,834
  7,339
  7,866
  8,416
  8,991
  9,592
  10,220
  10,878
  11,567
  12,288
  13,044
  13,836
  14,666
  15,537
  16,451
  17,410
  18,417
  19,474
  20,584
Depreciation, amort., depletion, $m
  2,920
  3,132
  3,354
  3,584
  3,824
  4,073
  4,333
  4,602
  4,882
  5,173
  4,835
  5,149
  5,477
  5,817
  6,172
  6,542
  6,927
  7,329
  7,748
  8,186
  8,643
  9,120
  9,619
  10,141
  10,687
  11,258
  11,856
  12,482
  13,138
  13,824
Funds from operations, $m
  4,930
  5,456
  6,011
  6,589
  7,191
  7,818
  8,470
  9,150
  9,856
  10,592
  11,186
  11,984
  12,816
  13,683
  14,588
  15,533
  16,519
  17,549
  18,626
  19,752
  20,931
  22,164
  23,455
  24,808
  26,225
  27,710
  29,267
  30,899
  32,612
  34,408
Change in working capital, $m
  94
  98
  102
  106
  111
  115
  119
  124
  129
  134
  139
  145
  151
  157
  163
  170
  178
  185
  193
  202
  211
  220
  230
  240
  252
  263
  275
  288
  302
  316
Cash from operations, $m
  4,836
  5,359
  5,909
  6,483
  7,080
  7,703
  8,351
  9,025
  9,727
  10,458
  11,046
  11,839
  12,665
  13,526
  14,425
  15,362
  16,341
  17,364
  18,433
  19,551
  20,720
  21,944
  23,225
  24,567
  25,973
  27,447
  28,991
  30,611
  32,309
  34,091
Maintenance CAPEX, $m
  -2,076
  -2,279
  -2,492
  -2,713
  -2,944
  -3,184
  -3,433
  -3,692
  -3,962
  -4,241
  -4,532
  -4,835
  -5,149
  -5,477
  -5,817
  -6,172
  -6,542
  -6,927
  -7,329
  -7,748
  -8,186
  -8,643
  -9,120
  -9,619
  -10,141
  -10,687
  -11,258
  -11,856
  -12,482
  -13,138
New CAPEX, $m
  -5,409
  -5,650
  -5,891
  -6,134
  -6,381
  -6,634
  -6,895
  -7,165
  -7,446
  -7,739
  -8,046
  -8,368
  -8,706
  -9,061
  -9,436
  -9,831
  -10,248
  -10,688
  -11,152
  -11,641
  -12,158
  -12,702
  -13,277
  -13,882
  -14,521
  -15,193
  -15,902
  -16,649
  -17,435
  -18,263
Cash from investing activities, $m
  -7,485
  -7,929
  -8,383
  -8,847
  -9,325
  -9,818
  -10,328
  -10,857
  -11,408
  -11,980
  -12,578
  -13,203
  -13,855
  -14,538
  -15,253
  -16,003
  -16,790
  -17,615
  -18,481
  -19,389
  -20,344
  -21,345
  -22,397
  -23,501
  -24,662
  -25,880
  -27,160
  -28,505
  -29,917
  -31,401
Free cash flow, $m
  -2,649
  -2,571
  -2,473
  -2,364
  -2,244
  -2,115
  -1,977
  -1,832
  -1,680
  -1,522
  -1,532
  -1,364
  -1,190
  -1,012
  -829
  -641
  -449
  -251
  -48
  162
  377
  599
  828
  1,066
  1,311
  1,566
  1,830
  2,106
  2,392
  2,691
Issuance/(repayment) of debt, $m
  5,946
  6,094
  6,353
  6,616
  6,882
  7,156
  7,437
  7,728
  8,031
  8,347
  8,678
  9,025
  9,390
  9,773
  10,178
  10,604
  11,053
  11,528
  12,028
  12,556
  13,113
  13,700
  14,320
  14,973
  15,662
  16,387
  17,152
  17,957
  18,805
  19,698
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  5,946
  6,094
  6,353
  6,616
  6,882
  7,156
  7,437
  7,728
  8,031
  8,347
  8,678
  9,025
  9,390
  9,773
  10,178
  10,604
  11,053
  11,528
  12,028
  12,556
  13,113
  13,700
  14,320
  14,973
  15,662
  16,387
  17,152
  17,957
  18,805
  19,698
Total cash flow (excl. dividends), $m
  3,297
  3,523
  3,880
  4,251
  4,638
  5,041
  5,460
  5,896
  6,351
  6,825
  7,146
  7,662
  8,200
  8,762
  9,349
  9,963
  10,605
  11,277
  11,980
  12,717
  13,490
  14,299
  15,148
  16,039
  16,973
  17,953
  18,982
  20,063
  21,197
  22,389
Retained Cash Flow (-), $m
  -1,733
  -1,759
  -1,834
  -1,910
  -1,987
  -2,066
  -2,147
  -2,231
  -2,318
  -2,410
  -2,505
  -2,605
  -2,710
  -2,821
  -2,938
  -3,061
  -3,191
  -3,328
  -3,472
  -3,624
  -3,785
  -3,955
  -4,134
  -4,322
  -4,521
  -4,730
  -4,951
  -5,184
  -5,428
  -5,686
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,564
  1,764
  2,046
  2,342
  2,651
  2,975
  3,313
  3,665
  4,033
  4,415
  4,641
  5,056
  5,489
  5,940
  6,411
  6,902
  7,414
  7,949
  8,508
  9,093
  9,705
  10,345
  11,015
  11,716
  12,452
  13,223
  14,031
  14,879
  15,769
  16,703
Discount rate, %
  10.20
  10.71
  11.25
  11.81
  12.40
  13.02
  13.67
  14.35
  15.07
  15.82
  16.61
  17.45
  18.32
  19.23
  20.20
  21.21
  22.27
  23.38
  24.55
  25.77
  27.06
  28.42
  29.84
  31.33
  32.90
  34.54
  36.27
  38.08
  39.99
  41.98
PV of cash for distribution, $m
  1,419
  1,439
  1,486
  1,499
  1,478
  1,428
  1,351
  1,254
  1,140
  1,016
  856
  734
  616
  506
  406
  318
  243
  181
  131
  93
  63
  42
  27
  17
  10
  6
  3
  2
  1
  0
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Dominion Energy, Inc., formerly Dominion Resources, Inc., is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and regulated natural gas transmission and distribution infrastructure. It operates through three segments: Dominion Virginia Power operating segment (DVP), Dominion Generation, Dominion Energy, and Corporate and Other. The DVP segment includes regulated electric distribution and regulated electric transmission. The Dominion Generation segment includes regulated electric fleet and merchant electric fleet. The Dominion Energy segment includes gas transmission and storage, gas gathering and processing, liquefied natural gas import and storage, and nonregulated retail energy marketing. As of December 31, 2016, Dominion served utility and retail energy customers, and operated an underground natural gas storage system with approximately one trillion cubic feet of storage capacity.

FINANCIAL RATIOS  of  Dominion Energy (D)

Valuation Ratios
P/E Ratio 20.9
Price to Sales 3.8
Price to Book 3
Price to Tangible Book
Price to Cash Flow 10.7
Price to Free Cash Flow -22.7
Growth Rates
Sales Growth Rate 0.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 9.1%
Cap. Spend. - 3 Yr. Gr. Rate 8.4%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 207%
Total Debt to Equity 240.3%
Interest Coverage 4
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 4.2%
Return On Total Capital 4.7%
Ret/ On T. Cap. - 3 Yr. Avg. 4.4%
Return On Equity 15.6%
Return On Equity - 3 Yr. Avg. 14.2%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 47.9%
EBITDA Margin - 3 Yr. Avg. 42.5%
Operating Margin 30.9%
Oper. Margin - 3 Yr. Avg. 27.7%
Pre-Tax Margin 24.4%
Pre-Tax Margin - 3 Yr. Avg. 21%
Net Profit Margin 18.1%
Net Profit Margin - 3 Yr. Avg. 15%
Effective Tax Rate 22.8%
Eff/ Tax Rate - 3 Yr. Avg. 26.8%
Payout Ratio 81.3%

D stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the D stock intrinsic value calculation we used $12586 million for the last fiscal year's total revenue generated by Dominion Energy. The default revenue input number comes from 0001 income statement of Dominion Energy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our D stock valuation model: a) initial revenue growth rate of 9.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10.2%, whose default value for D is calculated based on our internal credit rating of Dominion Energy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Dominion Energy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of D stock the variable cost ratio is equal to 40.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3400 million in the base year in the intrinsic value calculation for D stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Dominion Energy.

Corporate tax rate of 27% is the nominal tax rate for Dominion Energy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the D stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for D are equal to 438.7%.

Life of production assets of 26.6 years is the average useful life of capital assets used in Dominion Energy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for D is equal to 7.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $17142 million for Dominion Energy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 653.766 million for Dominion Energy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Dominion Energy at the current share price and the inputted number of shares is $46.2 billion.

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