Intrinsic value of DTE Energy - DTE

Previous Close

$101.86

  Intrinsic Value

$210.13

stock screener

  Rating & Target

str. buy

+106%

Previous close

$101.86

 
Intrinsic value

$210.13

 
Up/down potential

+106%

 
Rating

str. buy

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of DTE Energy (DTE) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.83
  10.80
  10.22
  9.70
  9.23
  8.81
  8.42
  8.08
  7.77
  7.50
  7.25
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.07
  5.97
  5.87
  5.78
  5.71
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
Revenue, $m
  0
  11,778
  12,982
  14,241
  15,555
  16,925
  18,350
  19,834
  21,375
  22,978
  24,643
  26,374
  28,172
  30,042
  31,988
  34,011
  36,118
  38,312
  40,598
  42,982
  45,467
  48,061
  50,770
  53,598
  56,553
  59,643
  62,873
  66,252
  69,789
  73,490
  77,365
Variable operating expenses, $m
 
  3,473
  3,805
  4,152
  4,514
  4,891
  5,284
  5,693
  6,117
  6,559
  7,018
  7,266
  7,761
  8,277
  8,812
  9,370
  9,950
  10,555
  11,185
  11,841
  12,526
  13,241
  13,987
  14,766
  15,580
  16,431
  17,321
  18,252
  19,226
  20,246
  21,314
Fixed operating expenses, $m
 
  6,335
  6,493
  6,655
  6,822
  6,992
  7,167
  7,346
  7,530
  7,718
  7,911
  8,109
  8,311
  8,519
  8,732
  8,950
  9,174
  9,404
  9,639
  9,880
  10,127
  10,380
  10,639
  10,905
  11,178
  11,457
  11,744
  12,037
  12,338
  12,647
  12,963
Total operating expenses, $m
  9,185
  9,808
  10,298
  10,807
  11,336
  11,883
  12,451
  13,039
  13,647
  14,277
  14,929
  15,375
  16,072
  16,796
  17,544
  18,320
  19,124
  19,959
  20,824
  21,721
  22,653
  23,621
  24,626
  25,671
  26,758
  27,888
  29,065
  30,289
  31,564
  32,893
  34,277
Operating income, $m
  1,445
  1,970
  2,684
  3,434
  4,219
  5,041
  5,899
  6,795
  7,728
  8,701
  9,715
  10,999
  12,100
  13,247
  14,443
  15,691
  16,993
  18,354
  19,775
  21,261
  22,815
  24,441
  26,143
  27,927
  29,795
  31,754
  33,808
  35,963
  38,224
  40,597
  43,088
EBITDA, $m
  2,421
  2,719
  3,486
  4,292
  5,136
  6,018
  6,939
  7,900
  8,902
  9,945
  11,032
  12,165
  13,345
  14,575
  15,857
  17,194
  18,590
  20,047
  21,569
  23,161
  24,824
  26,565
  28,388
  30,296
  32,295
  34,390
  36,587
  38,891
  41,308
  43,845
  46,508
Interest expense (income), $m
  448
  491
  594
  703
  817
  936
  1,060
  1,189
  1,324
  1,463
  1,608
  1,759
  1,916
  2,079
  2,248
  2,424
  2,608
  2,798
  2,997
  3,204
  3,420
  3,645
  3,880
  4,125
  4,381
  4,649
  4,929
  5,221
  5,527
  5,848
  6,183
Earnings before tax, $m
  1,105
  1,479
  2,090
  2,731
  3,402
  4,105
  4,839
  5,605
  6,405
  7,238
  8,106
  9,240
  10,184
  11,168
  12,195
  13,267
  14,386
  15,555
  16,778
  18,057
  19,395
  20,796
  22,264
  23,802
  25,414
  27,105
  28,879
  30,742
  32,697
  34,749
  36,906
Tax expense, $m
  271
  399
  564
  737
  919
  1,108
  1,307
  1,513
  1,729
  1,954
  2,189
  2,495
  2,750
  3,015
  3,293
  3,582
  3,884
  4,200
  4,530
  4,875
  5,237
  5,615
  6,011
  6,426
  6,862
  7,318
  7,797
  8,300
  8,828
  9,382
  9,965
Net income, $m
  868
  1,080
  1,525
  1,993
  2,484
  2,997
  3,533
  4,092
  4,675
  5,284
  5,917
  6,745
  7,434
  8,153
  8,902
  9,685
  10,502
  11,355
  12,248
  13,181
  14,158
  15,181
  16,252
  17,375
  18,552
  19,787
  21,082
  22,441
  23,868
  25,367
  26,941

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  92
  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
  32,041
  35,369
  38,984
  42,765
  46,711
  50,824
  55,106
  59,560
  64,191
  69,003
  74,003
  79,200
  84,602
  90,218
  96,059
  102,136
  108,463
  115,051
  121,917
  129,074
  136,539
  144,329
  152,461
  160,955
  169,830
  179,107
  188,808
  198,956
  209,575
  220,690
  232,328
Adjusted assets (=assets-cash), $m
  31,949
  35,369
  38,984
  42,765
  46,711
  50,824
  55,106
  59,560
  64,191
  69,003
  74,003
  79,200
  84,602
  90,218
  96,059
  102,136
  108,463
  115,051
  121,917
  129,074
  136,539
  144,329
  152,461
  160,955
  169,830
  179,107
  188,808
  198,956
  209,575
  220,690
  232,328
Revenue / Adjusted assets
  0.000
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
  0.333
Average production assets, $m
  2,350
  2,603
  2,869
  3,147
  3,438
  3,740
  4,055
  4,383
  4,724
  5,078
  5,446
  5,829
  6,226
  6,639
  7,069
  7,516
  7,982
  8,467
  8,972
  9,499
  10,048
  10,622
  11,220
  11,845
  12,498
  13,181
  13,895
  14,642
  15,423
  16,241
  17,098
Working capital, $m
  325
  824
  909
  997
  1,089
  1,185
  1,285
  1,388
  1,496
  1,608
  1,725
  1,846
  1,972
  2,103
  2,239
  2,381
  2,528
  2,682
  2,842
  3,009
  3,183
  3,364
  3,554
  3,752
  3,959
  4,175
  4,401
  4,638
  4,885
  5,144
  5,416
Total debt, $m
  11,782
  14,147
  16,743
  19,457
  22,291
  25,244
  28,318
  31,516
  34,841
  38,296
  41,886
  45,618
  49,496
  53,528
  57,722
  62,086
  66,628
  71,359
  76,288
  81,427
  86,787
  92,380
  98,219
  104,318
  110,690
  117,351
  124,316
  131,603
  139,227
  147,208
  155,563
Total liabilities, $m
  23,030
  25,395
  27,991
  30,705
  33,539
  36,492
  39,566
  42,764
  46,089
  49,544
  53,134
  56,866
  60,744
  64,776
  68,970
  73,334
  77,876
  82,607
  87,536
  92,675
  98,035
  103,628
  109,467
  115,566
  121,938
  128,599
  135,564
  142,851
  150,475
  158,456
  166,811
Total equity, $m
  9,011
  9,974
  10,994
  12,060
  13,173
  14,333
  15,540
  16,796
  18,102
  19,459
  20,869
  22,334
  23,858
  25,441
  27,089
  28,802
  30,586
  32,444
  34,381
  36,399
  38,504
  40,701
  42,994
  45,389
  47,892
  50,508
  53,244
  56,106
  59,100
  62,235
  65,516
Total liabilities and equity, $m
  32,041
  35,369
  38,985
  42,765
  46,712
  50,825
  55,106
  59,560
  64,191
  69,003
  74,003
  79,200
  84,602
  90,217
  96,059
  102,136
  108,462
  115,051
  121,917
  129,074
  136,539
  144,329
  152,461
  160,955
  169,830
  179,107
  188,808
  198,957
  209,575
  220,691
  232,327
Debt-to-equity ratio
  1.308
  1.420
  1.520
  1.610
  1.690
  1.760
  1.820
  1.880
  1.920
  1.970
  2.010
  2.040
  2.070
  2.100
  2.130
  2.160
  2.180
  2.200
  2.220
  2.240
  2.250
  2.270
  2.280
  2.300
  2.310
  2.320
  2.330
  2.350
  2.360
  2.370
  2.370
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
  0.282

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  868
  1,080
  1,525
  1,993
  2,484
  2,997
  3,533
  4,092
  4,675
  5,284
  5,917
  6,745
  7,434
  8,153
  8,902
  9,685
  10,502
  11,355
  12,248
  13,181
  14,158
  15,181
  16,252
  17,375
  18,552
  19,787
  21,082
  22,441
  23,868
  25,367
  26,941
Depreciation, amort., depletion, $m
  976
  749
  802
  858
  916
  977
  1,040
  1,105
  1,173
  1,244
  1,318
  1,166
  1,245
  1,328
  1,414
  1,503
  1,596
  1,693
  1,794
  1,900
  2,010
  2,124
  2,244
  2,369
  2,500
  2,636
  2,779
  2,928
  3,085
  3,248
  3,420
Funds from operations, $m
  1,990
  1,829
  2,328
  2,851
  3,400
  3,973
  4,572
  5,197
  5,849
  6,528
  7,235
  7,911
  8,679
  9,480
  10,316
  11,188
  12,098
  13,049
  14,042
  15,081
  16,168
  17,305
  18,496
  19,744
  21,052
  22,423
  23,861
  25,370
  26,953
  28,615
  30,361
Change in working capital, $m
  -94
  80
  84
  88
  92
  96
  100
  104
  108
  112
  117
  121
  126
  131
  136
  142
  147
  154
  160
  167
  174
  182
  190
  198
  207
  216
  226
  237
  248
  259
  271
Cash from operations, $m
  2,084
  1,749
  2,244
  2,763
  3,308
  3,877
  4,473
  5,093
  5,741
  6,416
  7,119
  7,790
  8,553
  9,350
  10,180
  11,046
  11,951
  12,895
  13,882
  14,914
  15,994
  17,124
  18,307
  19,546
  20,845
  22,207
  23,635
  25,133
  26,706
  28,356
  30,089
Maintenance CAPEX, $m
  0
  -470
  -521
  -574
  -629
  -688
  -748
  -811
  -877
  -945
  -1,016
  -1,089
  -1,166
  -1,245
  -1,328
  -1,414
  -1,503
  -1,596
  -1,693
  -1,794
  -1,900
  -2,010
  -2,124
  -2,244
  -2,369
  -2,500
  -2,636
  -2,779
  -2,928
  -3,085
  -3,248
New CAPEX, $m
  -2,045
  -253
  -266
  -278
  -290
  -303
  -315
  -328
  -341
  -354
  -368
  -382
  -398
  -413
  -430
  -447
  -466
  -485
  -505
  -527
  -549
  -573
  -598
  -625
  -653
  -683
  -714
  -747
  -781
  -818
  -856
Cash from investing activities, $m
  -3,388
  -723
  -787
  -852
  -919
  -991
  -1,063
  -1,139
  -1,218
  -1,299
  -1,384
  -1,471
  -1,564
  -1,658
  -1,758
  -1,861
  -1,969
  -2,081
  -2,198
  -2,321
  -2,449
  -2,583
  -2,722
  -2,869
  -3,022
  -3,183
  -3,350
  -3,526
  -3,709
  -3,903
  -4,104
Free cash flow, $m
  -1,304
  1,026
  1,457
  1,911
  2,388
  2,887
  3,409
  3,955
  4,523
  5,117
  5,735
  6,318
  6,990
  7,691
  8,422
  9,185
  9,982
  10,814
  11,684
  12,593
  13,545
  14,541
  15,584
  16,677
  17,823
  19,024
  20,285
  21,607
  22,996
  24,454
  25,985
Issuance/(repayment) of debt, $m
  1,169
  2,457
  2,595
  2,715
  2,834
  2,953
  3,074
  3,198
  3,325
  3,455
  3,590
  3,731
  3,878
  4,032
  4,194
  4,364
  4,542
  4,731
  4,929
  5,139
  5,360
  5,593
  5,839
  6,099
  6,372
  6,661
  6,965
  7,286
  7,624
  7,981
  8,356
Issuance/(repurchase) of shares, $m
  621
  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  
  1,890
  2,457
  2,595
  2,715
  2,834
  2,953
  3,074
  3,198
  3,325
  3,455
  3,590
  3,731
  3,878
  4,032
  4,194
  4,364
  4,542
  4,731
  4,929
  5,139
  5,360
  5,593
  5,839
  6,099
  6,372
  6,661
  6,965
  7,286
  7,624
  7,981
  8,356
Total cash flow (excl. dividends), $m
  586
  3,483
  4,052
  4,626
  5,221
  5,840
  6,484
  7,152
  7,848
  8,572
  9,326
  10,049
  10,868
  11,723
  12,616
  13,549
  14,524
  15,545
  16,613
  17,732
  18,905
  20,134
  21,423
  22,776
  24,195
  25,685
  27,250
  28,894
  30,620
  32,434
  34,340
Retained Cash Flow (-), $m
  -239
  -963
  -1,019
  -1,066
  -1,113
  -1,160
  -1,207
  -1,256
  -1,306
  -1,357
  -1,410
  -1,465
  -1,523
  -1,584
  -1,647
  -1,714
  -1,784
  -1,858
  -1,936
  -2,018
  -2,105
  -2,197
  -2,293
  -2,395
  -2,503
  -2,616
  -2,736
  -2,862
  -2,995
  -3,134
  -3,282
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
 
  2,520
  3,033
  3,560
  4,109
  4,681
  5,276
  5,896
  6,542
  7,215
  7,915
  8,584
  9,345
  10,140
  10,969
  11,835
  12,740
  13,687
  14,677
  15,714
  16,799
  17,937
  19,130
  20,380
  21,692
  23,069
  24,514
  26,032
  27,626
  29,300
  31,059
Discount rate, %
 
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
 
  2,320
  2,551
  2,713
  2,811
  2,847
  2,825
  2,748
  2,623
  2,459
  2,262
  2,029
  1,801
  1,567
  1,338
  1,119
  917
  735
  576
  441
  329
  239
  170
  117
  78
  51
  32
  19
  11
  6
  3
Current shareholders' claim on cash, %
  100
  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

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 21.1
Price to Sales 1.7
Price to Book 2
Price to Tangible Book
Price to Cash Flow 8.8
Price to Free Cash Flow 468.6
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 $10630 million for the last fiscal year's total revenue generated by DTE Energy. The default revenue input number comes from 2016 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 10.8% 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 8.6%, 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 29.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $6180 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 4.2% 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 22.1%.

Life of production assets of 4.6 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 7%. 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 - $9011 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 179.609 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 $18.3 billion.

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▶ 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]
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▶ November Top Dividend Stock   [08:03AM  Simply Wall St.]
▶ DTE Energy increases dividend 7 percent   [Nov-03-17 04:15PM  PR Newswire]
▶ ETFs with exposure to DTE Energy Co. : October 30, 2017   [Oct-30-17 11:42AM  Capital Cube]
▶ DTE Energy misses 3Q profit forecasts   [07:03AM  Associated Press]
▶ Where CMS Energys Dividend Growth Stands among Peers   [Oct-20-17 09:09AM  Market Realist]
▶ ETFs with exposure to DTE Energy Co. : October 17, 2017   [Oct-17-17 09:40AM  Capital Cube]
Financial statements of DTE
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