Intrinsic value of DTE Energy - DTE

Previous Close

$106.60

  Intrinsic Value

$41.53

stock screener

  Rating & Target

str. sell

-61%

Previous close

$106.60

 
Intrinsic value

$41.53

 
Up/down potential

-61%

 
Rating

str. sell

We calculate the intrinsic value of DTE 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 2017), $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 19.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  18.60
  17.24
  16.02
  14.91
  13.92
  13.03
  12.23
  11.50
  10.85
  10.27
  9.74
  9.27
  8.84
  8.46
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.21
  6.08
  5.98
  5.88
  5.79
  5.71
  5.64
Revenue, $m
  14,952
  17,530
  20,337
  23,370
  26,624
  30,093
  33,773
  37,659
  41,746
  46,033
  50,518
  55,200
  60,080
  65,161
  70,446
  75,941
  81,652
  87,586
  93,754
  100,164
  106,828
  113,759
  120,971
  128,477
  136,295
  144,441
  152,932
  161,788
  171,029
  180,676
Variable operating expenses, $m
  12,860
  15,022
  17,378
  19,922
  22,652
  25,562
  28,649
  31,909
  35,338
  38,935
  42,381
  46,309
  50,403
  54,666
  59,100
  63,710
  68,501
  73,479
  78,653
  84,031
  89,622
  95,437
  101,487
  107,784
  114,343
  121,176
  128,300
  135,729
  143,482
  151,575
Fixed operating expenses, $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 operating expenses, $m
  12,860
  15,022
  17,378
  19,922
  22,652
  25,562
  28,649
  31,909
  35,338
  38,935
  42,381
  46,309
  50,403
  54,666
  59,100
  63,710
  68,501
  73,479
  78,653
  84,031
  89,622
  95,437
  101,487
  107,784
  114,343
  121,176
  128,300
  135,729
  143,482
  151,575
Operating income, $m
  2,092
  2,507
  2,960
  3,448
  3,972
  4,531
  5,124
  5,750
  6,408
  7,098
  8,137
  8,891
  9,677
  10,495
  11,346
  12,231
  13,151
  14,107
  15,100
  16,133
  17,206
  18,323
  19,484
  20,693
  21,952
  23,264
  24,632
  26,058
  27,547
  29,101
EBITDA, $m
  5,180
  6,073
  7,046
  8,097
  9,224
  10,426
  11,701
  13,047
  14,464
  15,949
  17,503
  19,125
  20,816
  22,576
  24,407
  26,311
  28,290
  30,346
  32,482
  34,703
  37,012
  39,414
  41,912
  44,513
  47,222
  50,044
  52,986
  56,054
  59,256
  62,598
Interest expense (income), $m
  448
  697
  942
  1,210
  1,502
  1,817
  2,155
  2,516
  2,898
  3,302
  3,727
  4,173
  4,639
  5,125
  5,633
  6,161
  6,710
  7,281
  7,875
  8,492
  9,133
  9,799
  10,492
  11,213
  11,962
  12,742
  13,555
  14,402
  15,284
  16,205
  17,165
Earnings before tax, $m
  1,395
  1,566
  1,750
  1,947
  2,155
  2,376
  2,608
  2,851
  3,106
  3,371
  3,964
  4,252
  4,551
  4,862
  5,186
  5,521
  5,870
  6,232
  6,609
  7,000
  7,407
  7,831
  8,272
  8,731
  9,210
  9,709
  10,230
  10,774
  11,342
  11,935
Tax expense, $m
  377
  423
  472
  526
  582
  641
  704
  770
  839
  910
  1,070
  1,148
  1,229
  1,313
  1,400
  1,491
  1,585
  1,683
  1,784
  1,890
  2,000
  2,114
  2,233
  2,357
  2,487
  2,622
  2,762
  2,909
  3,062
  3,222
Net income, $m
  1,018
  1,143
  1,277
  1,421
  1,573
  1,734
  1,904
  2,081
  2,267
  2,461
  2,894
  3,104
  3,322
  3,550
  3,785
  4,030
  4,285
  4,549
  4,824
  5,110
  5,407
  5,716
  6,038
  6,374
  6,723
  7,088
  7,468
  7,865
  8,280
  8,713

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
  40,086
  46,996
  54,523
  62,655
  71,378
  80,680
  90,545
  100,962
  111,920
  123,413
  135,436
  147,988
  161,072
  174,694
  188,864
  203,595
  218,906
  234,816
  251,350
  268,536
  286,402
  304,985
  324,318
  344,444
  365,402
  387,240
  410,005
  433,747
  458,522
  484,385
Adjusted assets (=assets-cash), $m
  40,086
  46,996
  54,523
  62,655
  71,378
  80,680
  90,545
  100,962
  111,920
  123,413
  135,436
  147,988
  161,072
  174,694
  188,864
  203,595
  218,906
  234,816
  251,350
  268,536
  286,402
  304,985
  324,318
  344,444
  365,402
  387,240
  410,005
  433,747
  458,522
  484,385
Revenue / Adjusted assets
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
  0.373
Average production assets, $m
  27,721
  32,500
  37,705
  43,329
  49,361
  55,793
  62,615
  69,819
  77,398
  85,346
  93,660
  102,340
  111,388
  120,808
  130,607
  140,795
  151,383
  162,385
  173,819
  185,704
  198,059
  210,910
  224,280
  238,197
  252,691
  267,793
  283,535
  299,955
  317,087
  334,973
Working capital, $m
  -464
  -543
  -630
  -724
  -825
  -933
  -1,047
  -1,167
  -1,294
  -1,427
  -1,566
  -1,711
  -1,862
  -2,020
  -2,184
  -2,354
  -2,531
  -2,715
  -2,906
  -3,105
  -3,312
  -3,527
  -3,750
  -3,983
  -4,225
  -4,478
  -4,741
  -5,015
  -5,302
  -5,601
Total debt, $m
  17,441
  22,403
  27,808
  33,646
  39,910
  46,588
  53,671
  61,151
  69,019
  77,271
  85,903
  94,916
  104,310
  114,090
  124,264
  134,841
  145,834
  157,258
  169,130
  181,469
  194,297
  207,639
  221,521
  235,970
  251,019
  266,698
  283,043
  300,091
  317,879
  336,449
Total liabilities, $m
  28,781
  33,743
  39,148
  44,986
  51,250
  57,928
  65,011
  72,491
  80,359
  88,611
  97,243
  106,256
  115,650
  125,430
  135,604
  146,181
  157,174
  168,598
  180,470
  192,809
  205,637
  218,979
  232,861
  247,310
  262,359
  278,038
  294,383
  311,431
  329,219
  347,789
Total equity, $m
  11,304
  13,253
  15,376
  17,669
  20,129
  22,752
  25,534
  28,471
  31,562
  34,803
  38,193
  41,733
  45,422
  49,264
  53,260
  57,414
  61,731
  66,218
  70,881
  75,727
  80,765
  86,006
  91,458
  97,133
  103,043
  109,202
  115,621
  122,317
  129,303
  136,597
Total liabilities and equity, $m
  40,085
  46,996
  54,524
  62,655
  71,379
  80,680
  90,545
  100,962
  111,921
  123,414
  135,436
  147,989
  161,072
  174,694
  188,864
  203,595
  218,905
  234,816
  251,351
  268,536
  286,402
  304,985
  324,319
  344,443
  365,402
  387,240
  410,004
  433,748
  458,522
  484,386
Debt-to-equity ratio
  1.540
  1.690
  1.810
  1.900
  1.980
  2.050
  2.100
  2.150
  2.190
  2.220
  2.250
  2.270
  2.300
  2.320
  2.330
  2.350
  2.360
  2.370
  2.390
  2.400
  2.410
  2.410
  2.420
  2.430
  2.440
  2.440
  2.450
  2.450
  2.460
  2.460
Adjusted equity ratio
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,018
  1,143
  1,277
  1,421
  1,573
  1,734
  1,904
  2,081
  2,267
  2,461
  2,894
  3,104
  3,322
  3,550
  3,785
  4,030
  4,285
  4,549
  4,824
  5,110
  5,407
  5,716
  6,038
  6,374
  6,723
  7,088
  7,468
  7,865
  8,280
  8,713
Depreciation, amort., depletion, $m
  3,088
  3,566
  4,087
  4,649
  5,252
  5,895
  6,578
  7,298
  8,056
  8,851
  9,366
  10,234
  11,139
  12,081
  13,061
  14,079
  15,138
  16,239
  17,382
  18,570
  19,806
  21,091
  22,428
  23,820
  25,269
  26,779
  28,354
  29,995
  31,709
  33,497
Funds from operations, $m
  4,106
  4,709
  5,364
  6,070
  6,826
  7,630
  8,481
  9,379
  10,323
  11,312
  12,260
  13,338
  14,461
  15,630
  16,846
  18,110
  19,423
  20,788
  22,206
  23,680
  25,213
  26,807
  28,466
  30,193
  31,992
  33,867
  35,822
  37,861
  39,988
  42,210
Change in working capital, $m
  -73
  -80
  -87
  -94
  -101
  -108
  -114
  -120
  -127
  -133
  -139
  -145
  -151
  -158
  -164
  -170
  -177
  -184
  -191
  -199
  -207
  -215
  -224
  -233
  -242
  -253
  -263
  -275
  -286
  -299
Cash from operations, $m
  4,179
  4,789
  5,451
  6,164
  6,926
  7,737
  8,595
  9,500
  10,450
  11,445
  12,399
  13,483
  14,613
  15,788
  17,010
  18,280
  19,600
  20,972
  22,397
  23,879
  25,420
  27,022
  28,690
  30,426
  32,235
  34,120
  36,085
  38,135
  40,275
  42,509
Maintenance CAPEX, $m
  -2,337
  -2,772
  -3,250
  -3,771
  -4,333
  -4,936
  -5,579
  -6,262
  -6,982
  -7,740
  -8,535
  -9,366
  -10,234
  -11,139
  -12,081
  -13,061
  -14,079
  -15,138
  -16,239
  -17,382
  -18,570
  -19,806
  -21,091
  -22,428
  -23,820
  -25,269
  -26,779
  -28,354
  -29,995
  -31,709
New CAPEX, $m
  -4,351
  -4,779
  -5,205
  -5,623
  -6,033
  -6,432
  -6,822
  -7,204
  -7,578
  -7,948
  -8,314
  -8,680
  -9,048
  -9,420
  -9,799
  -10,188
  -10,588
  -11,003
  -11,434
  -11,884
  -12,356
  -12,850
  -13,370
  -13,917
  -14,494
  -15,102
  -15,743
  -16,419
  -17,133
  -17,886
Cash from investing activities, $m
  -6,688
  -7,551
  -8,455
  -9,394
  -10,366
  -11,368
  -12,401
  -13,466
  -14,560
  -15,688
  -16,849
  -18,046
  -19,282
  -20,559
  -21,880
  -23,249
  -24,667
  -26,141
  -27,673
  -29,266
  -30,926
  -32,656
  -34,461
  -36,345
  -38,314
  -40,371
  -42,522
  -44,773
  -47,128
  -49,595
Free cash flow, $m
  -2,509
  -2,762
  -3,004
  -3,230
  -3,439
  -3,631
  -3,806
  -3,966
  -4,111
  -4,243
  -4,450
  -4,563
  -4,669
  -4,771
  -4,870
  -4,968
  -5,067
  -5,169
  -5,275
  -5,387
  -5,506
  -5,634
  -5,771
  -5,919
  -6,079
  -6,251
  -6,437
  -6,638
  -6,853
  -7,085
Issuance/(repayment) of debt, $m
  4,526
  4,962
  5,404
  5,839
  6,263
  6,678
  7,083
  7,479
  7,868
  8,252
  8,632
  9,012
  9,394
  9,780
  10,174
  10,577
  10,993
  11,424
  11,871
  12,339
  12,828
  13,342
  13,882
  14,450
  15,048
  15,679
  16,345
  17,047
  17,788
  18,570
Issuance/(repurchase) of shares, $m
  774
  806
  845
  872
  887
  889
  878
  856
  823
  780
  497
  436
  367
  292
  210
  124
  33
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  5,300
  5,768
  6,249
  6,711
  7,150
  7,567
  7,961
  8,335
  8,691
  9,032
  9,129
  9,448
  9,761
  10,072
  10,384
  10,701
  11,026
  11,424
  11,871
  12,339
  12,828
  13,342
  13,882
  14,450
  15,048
  15,679
  16,345
  17,047
  17,788
  18,570
Total cash flow (excl. dividends), $m
  2,791
  3,005
  3,245
  3,481
  3,711
  3,936
  4,155
  4,370
  4,581
  4,789
  4,679
  4,885
  5,092
  5,301
  5,515
  5,733
  5,959
  6,255
  6,596
  6,952
  7,322
  7,708
  8,110
  8,531
  8,970
  9,428
  9,908
  10,410
  10,935
  11,485
Retained Cash Flow (-), $m
  -1,792
  -1,949
  -2,123
  -2,293
  -2,460
  -2,623
  -2,782
  -2,938
  -3,090
  -3,241
  -3,390
  -3,540
  -3,690
  -3,841
  -3,996
  -4,154
  -4,318
  -4,487
  -4,663
  -4,846
  -5,038
  -5,240
  -5,452
  -5,675
  -5,910
  -6,158
  -6,420
  -6,695
  -6,986
  -7,293
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
  999
  1,057
  1,123
  1,188
  1,251
  1,313
  1,373
  1,432
  1,491
  1,548
  1,289
  1,345
  1,402
  1,460
  1,519
  1,579
  1,641
  1,768
  1,934
  2,106
  2,284
  2,468
  2,658
  2,855
  3,059
  3,270
  3,488
  3,714
  3,948
  4,191
Discount rate, %
  8.50
  8.93
  9.37
  9.84
  10.33
  10.85
  11.39
  11.96
  12.56
  13.19
  13.85
  14.54
  15.26
  16.03
  16.83
  17.67
  18.55
  19.48
  20.46
  21.48
  22.55
  23.68
  24.86
  26.11
  27.41
  28.78
  30.22
  31.73
  33.32
  34.99
PV of cash for distribution, $m
  921
  891
  858
  816
  765
  708
  645
  580
  514
  449
  309
  264
  221
  182
  147
  117
  91
  72
  56
  43
  32
  23
  16
  11
  7
  5
  3
  2
  1
  1
Current shareholders' claim on cash, %
  96.1
  92.8
  89.9
  87.5
  85.3
  83.5
  81.9
  80.6
  79.4
  78.5
  77.9
  77.5
  77.1
  76.9
  76.7
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6
  76.6

DTE Energy Company is an energy company. Its segments include Electric, which consists of DTE Electric Company, which is engaged in the generation, purchase, distribution and sale of electricity to residential, commercial and industrial customers in southeastern Michigan; Gas, which consists of DTE Gas Company, which is engaged in the purchase, storage, transportation, distribution and sale of natural gas to residential, commercial and industrial customers throughout Michigan; Gas Storage and Pipelines, which consists of natural gas pipeline, gathering and storage businesses; Power and Industrial Projects, which consists of projects that deliver energy and utility-type products and services to industrial, commercial and institutional customers, and sell electricity from renewable energy projects; Energy Trading, which consists of energy marketing and trading operations, and Corporate and Other, which includes various holding company activities and holds certain non-utility debt.

FINANCIAL RATIOS  of  DTE Energy (DTE)

Valuation Ratios
P/E Ratio 22
Price to Sales 1.8
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 9.2
Price to Free Cash Flow 490.4
Growth Rates
Sales Growth Rate 2.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 1.2%
Cap. Spend. - 3 Yr. Gr. Rate 1.7%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 125.1%
Total Debt to Equity 130.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 4%
Ret/ On Assets - 3 Yr. Avg. 4%
Return On Total Capital 4.4%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity 9.8%
Return On Equity - 3 Yr. Avg. 9.8%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 23.8%
EBITDA Margin - 3 Yr. Avg. 22.8%
Operating Margin 13.6%
Oper. Margin - 3 Yr. Avg. 12.8%
Pre-Tax Margin 10.4%
Pre-Tax Margin - 3 Yr. Avg. 10%
Net Profit Margin 8.2%
Net Profit Margin - 3 Yr. Avg. 7.5%
Effective Tax Rate 24.5%
Eff/ Tax Rate - 3 Yr. Avg. 25.8%
Payout Ratio 61.2%

DTE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DTE stock intrinsic value calculation we used $12607 million for the last fiscal year's total revenue generated by DTE Energy. The default revenue input number comes from 2017 income statement of DTE 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 DTE stock valuation model: a) initial revenue growth rate of 18.6% 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 8.5%, whose default value for DTE is calculated based on our internal credit rating of DTE 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 DTE 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 DTE stock the variable cost ratio is equal to 86.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for DTE 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 DTE Energy.

Corporate tax rate of 27% is the nominal tax rate for DTE 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 DTE 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 DTE are equal to 185.4%.

Life of production assets of 10 years is the average useful life of capital assets used in DTE 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 DTE is equal to -3.1%. 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 - $9512 million for DTE 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 179 million for DTE 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 DTE Energy at the current share price and the inputted number of shares is $19.1 billion.

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COMPANY NEWS

▶ [$$] A California Billionaire Sets Michigans Energy Policy   [Jun-22-18 08:38PM  The Wall Street Journal]
▶ DTE Energy issues dividend   [Jun-21-18 04:15PM  PR Newswire]
▶ Billionaire Tom Steyer gets Michigan renewable energy deal   [May-18-18 01:53PM  Associated Press]
▶ U.S. Telecoms Becomes a Three-Horse Race   [Apr-30-18 02:43AM  Bloomberg Video]
▶ Michigan regulators approve new DTE natural gas power plant   [Apr-27-18 05:31PM  Associated Press]
▶ DTE Energy: 1Q Earnings Snapshot   [Apr-25-18 02:13PM  Associated Press]
▶ Ally Financial Named Best Company to Work for in Detroit   [Apr-24-18 12:48PM  Investopedia]
▶ CEO Says Deutsche Telekom Only Group Gaining Customers   [Feb-26-18 02:00AM  Bloomberg Video]
▶ Deutsche Telekom CEO Says Expanding 'Big Time in the U.S.'   [Feb-22-18 07:48AM  Bloomberg Video]
▶ Dividend Stocks Investors Love   [Feb-21-18 08:02AM  Simply Wall St.]
▶ APNewsBreak: Consumers Energy to stop burning coal by 2040   [Feb-19-18 12:06PM  Associated Press]
▶ DTE Energy issues dividend   [Feb-02-18 03:42PM  PR Newswire]
▶ Deutsche Telekom CEO Touts 5G Mobile `Revolution' for Services   [Jan-21-18 04:59PM  Bloomberg Video]
▶ DTE Energy Company (NYSE:DTE): Will The Growth Last?   [Dec-21-17 07:05AM  Simply Wall St.]
▶ DTE Energy sets 2018 annual meeting date   [Dec-07-17 04:15PM  PR Newswire]
▶ ETFs with exposure to DTE Energy Co. : December 5, 2017   [Dec-05-17 12:41PM  Capital Cube]
▶ 5 Stocks Hitting New Highs to Buy Right Now   [Nov-14-17 12:54PM  Zacks]
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