Intrinsic value of Duke Energy Corporation - DUK

Previous Close

$89.77

  Intrinsic Value

$22.90

stock screener

  Rating & Target

str. sell

-74%

Previous close

$89.77

 
Intrinsic value

$22.90

 
Up/down potential

-74%

 
Rating

str. sell

We calculate the intrinsic value of DUK 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 65.3

 

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, %
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.15
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
Revenue, $m
  25,845
  27,230
  28,680
  30,198
  31,787
  33,451
  35,195
  37,022
  38,937
  40,944
  43,049
  45,255
  47,569
  49,996
  52,541
  55,212
  58,013
  60,952
  64,037
  67,273
  70,669
  74,234
  77,975
  81,901
  86,022
  90,348
  94,889
  99,655
  104,659
  109,912
Variable operating expenses, $m
  19,254
  20,182
  21,154
  22,171
  23,236
  24,352
  25,521
  26,746
  28,029
  29,374
  28,855
  30,333
  31,884
  33,511
  35,217
  37,007
  38,885
  40,855
  42,922
  45,092
  47,368
  49,757
  52,265
  54,897
  57,659
  60,559
  63,602
  66,797
  70,151
  73,672
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
  19,254
  20,182
  21,154
  22,171
  23,236
  24,352
  25,521
  26,746
  28,029
  29,374
  28,855
  30,333
  31,884
  33,511
  35,217
  37,007
  38,885
  40,855
  42,922
  45,092
  47,368
  49,757
  52,265
  54,897
  57,659
  60,559
  63,602
  66,797
  70,151
  73,672
Operating income, $m
  6,591
  7,048
  7,526
  8,027
  8,551
  9,099
  9,674
  10,277
  10,908
  11,570
  14,194
  14,921
  15,684
  16,485
  17,324
  18,204
  19,128
  20,097
  21,114
  22,181
  23,301
  24,476
  25,710
  27,004
  28,363
  29,790
  31,287
  32,858
  34,508
  36,240
EBITDA, $m
  13,026
  13,724
  14,455
  15,220
  16,021
  16,860
  17,739
  18,659
  19,624
  20,636
  21,697
  22,809
  23,975
  25,198
  26,481
  27,827
  29,239
  30,720
  32,275
  33,906
  35,618
  37,414
  39,300
  41,279
  43,356
  45,536
  47,825
  50,227
  52,749
  55,396
Interest expense (income), $m
  1,794
  3,129
  3,416
  3,726
  4,049
  4,388
  4,743
  5,115
  5,504
  5,913
  6,340
  6,789
  7,259
  7,751
  8,268
  8,810
  9,379
  9,975
  10,601
  11,257
  11,946
  12,669
  13,428
  14,224
  15,059
  15,936
  16,857
  17,823
  18,837
  19,902
  21,019
Earnings before tax, $m
  3,463
  3,632
  3,801
  3,977
  4,162
  4,356
  4,559
  4,772
  4,996
  5,230
  7,405
  7,663
  7,933
  8,216
  8,514
  8,826
  9,153
  9,496
  9,857
  10,235
  10,632
  11,049
  11,486
  11,945
  12,427
  12,933
  13,464
  14,021
  14,607
  15,221
Tax expense, $m
  935
  981
  1,026
  1,074
  1,124
  1,176
  1,231
  1,288
  1,349
  1,412
  1,999
  2,069
  2,142
  2,218
  2,299
  2,383
  2,471
  2,564
  2,661
  2,763
  2,871
  2,983
  3,101
  3,225
  3,355
  3,492
  3,635
  3,786
  3,944
  4,110
Net income, $m
  2,528
  2,651
  2,774
  2,903
  3,038
  3,180
  3,328
  3,484
  3,647
  3,818
  5,406
  5,594
  5,791
  5,998
  6,215
  6,443
  6,682
  6,932
  7,195
  7,472
  7,761
  8,066
  8,385
  8,720
  9,072
  9,441
  9,829
  10,236
  10,663
  11,111

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
  152,930
  161,127
  169,705
  178,685
  188,089
  197,937
  208,255
  219,066
  230,397
  242,273
  254,725
  267,781
  281,473
  295,832
  310,895
  326,695
  343,272
  360,665
  378,915
  398,065
  418,162
  439,253
  461,389
  484,622
  509,008
  534,604
  561,473
  589,677
  619,284
  650,365
Adjusted assets (=assets-cash), $m
  152,930
  161,127
  169,705
  178,685
  188,089
  197,937
  208,255
  219,066
  230,397
  242,273
  254,725
  267,781
  281,473
  295,832
  310,895
  326,695
  343,272
  360,665
  378,915
  398,065
  418,162
  439,253
  461,389
  484,622
  509,008
  534,604
  561,473
  589,677
  619,284
  650,365
Revenue / Adjusted assets
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
  0.169
Average production assets, $m
  104,053
  109,630
  115,466
  121,576
  127,974
  134,675
  141,695
  149,051
  156,760
  164,841
  173,313
  182,197
  191,512
  201,283
  211,531
  222,282
  233,560
  245,394
  257,811
  270,841
  284,515
  298,865
  313,926
  329,734
  346,326
  363,741
  382,023
  401,213
  421,357
  442,504
Working capital, $m
  1,111
  1,171
  1,233
  1,299
  1,367
  1,438
  1,513
  1,592
  1,674
  1,761
  1,851
  1,946
  2,045
  2,150
  2,259
  2,374
  2,495
  2,621
  2,754
  2,893
  3,039
  3,192
  3,353
  3,522
  3,699
  3,885
  4,080
  4,285
  4,500
  4,726
Total debt, $m
  63,262
  68,992
  74,988
  81,265
  87,838
  94,722
  101,934
  109,491
  117,411
  125,713
  134,417
  143,543
  153,113
  163,151
  173,679
  184,724
  196,311
  208,469
  221,225
  234,612
  248,659
  263,402
  278,875
  295,115
  312,160
  330,052
  348,833
  368,548
  389,244
  410,969
Total liabilities, $m
  106,898
  112,628
  118,624
  124,901
  131,474
  138,358
  145,570
  153,127
  161,047
  169,349
  178,053
  187,179
  196,749
  206,787
  217,315
  228,360
  239,947
  252,105
  264,861
  278,248
  292,295
  307,038
  322,511
  338,751
  355,796
  373,688
  392,469
  412,184
  432,880
  454,605
Total equity, $m
  46,032
  48,499
  51,081
  53,784
  56,615
  59,579
  62,685
  65,939
  69,349
  72,924
  76,672
  80,602
  84,723
  89,046
  93,579
  98,335
  103,325
  108,560
  114,053
  119,818
  125,867
  132,215
  138,878
  145,871
  153,211
  160,916
  169,003
  177,493
  186,405
  195,760
Total liabilities and equity, $m
  152,930
  161,127
  169,705
  178,685
  188,089
  197,937
  208,255
  219,066
  230,396
  242,273
  254,725
  267,781
  281,472
  295,833
  310,894
  326,695
  343,272
  360,665
  378,914
  398,066
  418,162
  439,253
  461,389
  484,622
  509,007
  534,604
  561,472
  589,677
  619,285
  650,365
Debt-to-equity ratio
  1.370
  1.420
  1.470
  1.510
  1.550
  1.590
  1.630
  1.660
  1.690
  1.720
  1.750
  1.780
  1.810
  1.830
  1.860
  1.880
  1.900
  1.920
  1.940
  1.960
  1.980
  1.990
  2.010
  2.020
  2.040
  2.050
  2.060
  2.080
  2.090
  2.100
Adjusted equity ratio
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,528
  2,651
  2,774
  2,903
  3,038
  3,180
  3,328
  3,484
  3,647
  3,818
  5,406
  5,594
  5,791
  5,998
  6,215
  6,443
  6,682
  6,932
  7,195
  7,472
  7,761
  8,066
  8,385
  8,720
  9,072
  9,441
  9,829
  10,236
  10,663
  11,111
Depreciation, amort., depletion, $m
  6,435
  6,676
  6,929
  7,193
  7,470
  7,760
  8,064
  8,383
  8,716
  9,066
  7,503
  7,887
  8,291
  8,714
  9,157
  9,623
  10,111
  10,623
  11,161
  11,725
  12,317
  12,938
  13,590
  14,274
  14,992
  15,746
  16,538
  17,369
  18,241
  19,156
Funds from operations, $m
  8,962
  9,328
  9,703
  10,097
  10,509
  10,940
  11,393
  11,866
  12,363
  12,884
  12,909
  13,481
  14,082
  14,712
  15,372
  16,065
  16,793
  17,556
  18,356
  19,196
  20,078
  21,004
  21,975
  22,994
  24,064
  25,187
  26,366
  27,604
  28,903
  30,267
Change in working capital, $m
  57
  60
  62
  65
  68
  72
  75
  79
  82
  86
  90
  95
  99
  104
  109
  115
  120
  126
  133
  139
  146
  153
  161
  169
  177
  186
  195
  205
  215
  226
Cash from operations, $m
  8,906
  9,268
  9,641
  10,031
  10,440
  10,869
  11,318
  11,788
  12,281
  12,798
  12,818
  13,386
  13,982
  14,607
  15,263
  15,950
  16,672
  17,429
  18,224
  19,057
  19,932
  20,850
  21,814
  22,825
  23,887
  25,001
  26,171
  27,399
  28,688
  30,041
Maintenance CAPEX, $m
  -4,273
  -4,504
  -4,746
  -4,999
  -5,263
  -5,540
  -5,830
  -6,134
  -6,452
  -6,786
  -7,136
  -7,503
  -7,887
  -8,291
  -8,714
  -9,157
  -9,623
  -10,111
  -10,623
  -11,161
  -11,725
  -12,317
  -12,938
  -13,590
  -14,274
  -14,992
  -15,746
  -16,538
  -17,369
  -18,241
New CAPEX, $m
  -5,335
  -5,577
  -5,837
  -6,110
  -6,398
  -6,701
  -7,020
  -7,356
  -7,709
  -8,081
  -8,472
  -8,883
  -9,316
  -9,770
  -10,248
  -10,751
  -11,279
  -11,834
  -12,417
  -13,030
  -13,674
  -14,350
  -15,061
  -15,808
  -16,592
  -17,416
  -18,281
  -19,190
  -20,145
  -21,147
Cash from investing activities, $m
  -9,608
  -10,081
  -10,583
  -11,109
  -11,661
  -12,241
  -12,850
  -13,490
  -14,161
  -14,867
  -15,608
  -16,386
  -17,203
  -18,061
  -18,962
  -19,908
  -20,902
  -21,945
  -23,040
  -24,191
  -25,399
  -26,667
  -27,999
  -29,398
  -30,866
  -32,408
  -34,027
  -35,728
  -37,514
  -39,388
Free cash flow, $m
  -703
  -814
  -942
  -1,077
  -1,221
  -1,372
  -1,533
  -1,702
  -1,881
  -2,070
  -2,790
  -3,000
  -3,221
  -3,454
  -3,699
  -3,957
  -4,229
  -4,516
  -4,817
  -5,133
  -5,466
  -5,817
  -6,185
  -6,572
  -6,979
  -7,407
  -7,856
  -8,329
  -8,825
  -9,346
Issuance/(repayment) of debt, $m
  5,323
  5,730
  5,996
  6,277
  6,573
  6,884
  7,212
  7,557
  7,920
  8,302
  8,704
  9,126
  9,570
  10,038
  10,529
  11,045
  11,587
  12,157
  12,757
  13,386
  14,048
  14,743
  15,473
  16,240
  17,046
  17,892
  18,781
  19,715
  20,695
  21,726
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  
  5,323
  5,730
  5,996
  6,277
  6,573
  6,884
  7,212
  7,557
  7,920
  8,302
  8,704
  9,126
  9,570
  10,038
  10,529
  11,045
  11,587
  12,157
  12,757
  13,386
  14,048
  14,743
  15,473
  16,240
  17,046
  17,892
  18,781
  19,715
  20,695
  21,726
Total cash flow (excl. dividends), $m
  4,620
  4,916
  5,055
  5,200
  5,352
  5,512
  5,679
  5,855
  6,039
  6,232
  5,914
  6,127
  6,350
  6,584
  6,829
  7,087
  7,358
  7,642
  7,940
  8,253
  8,581
  8,926
  9,288
  9,668
  10,067
  10,485
  10,925
  11,386
  11,871
  12,379
Retained Cash Flow (-), $m
  -2,215
  -2,467
  -2,582
  -2,703
  -2,830
  -2,964
  -3,106
  -3,254
  -3,410
  -3,575
  -3,748
  -3,930
  -4,121
  -4,322
  -4,534
  -4,756
  -4,990
  -5,235
  -5,493
  -5,764
  -6,049
  -6,348
  -6,663
  -6,993
  -7,340
  -7,705
  -8,087
  -8,489
  -8,912
  -9,355
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
  2,405
  2,449
  2,473
  2,497
  2,522
  2,548
  2,574
  2,601
  2,629
  2,657
  2,166
  2,197
  2,229
  2,262
  2,296
  2,331
  2,368
  2,407
  2,447
  2,489
  2,532
  2,578
  2,625
  2,675
  2,726
  2,781
  2,837
  2,897
  2,959
  3,024
Discount rate, %
  8.90
  9.35
  9.81
  10.30
  10.82
  11.36
  11.93
  12.52
  13.15
  13.81
  14.50
  15.22
  15.98
  16.78
  17.62
  18.50
  19.43
  20.40
  21.42
  22.49
  23.61
  24.80
  26.03
  27.34
  28.70
  30.14
  31.65
  33.23
  34.89
  36.63
PV of cash for distribution, $m
  2,208
  2,048
  1,867
  1,687
  1,509
  1,336
  1,170
  1,012
  865
  729
  489
  401
  324
  258
  201
  154
  116
  85
  61
  43
  30
  20
  13
  8
  5
  3
  2
  1
  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

Duke Energy Corporation (Duke Energy) is an energy company. The Company operates through three segments: Electric Utilities and Infrastructure; Gas Utilities and Infrastructure, and Commercial Renewables. The Company operates in the United States through its direct and indirect subsidiaries. The Electric Utilities and Infrastructure segment provides retail electric service through the generation, transmission, distribution and sale of electricity to approximately 7.5 million customers within the Southeast and Midwest regions of the United States. The operations include electricity sold wholesale to municipalities, electric cooperative utilities and other load-serving entities. The Gas Utilities and Infrastructure segment serves residential, commercial, industrial and power generation natural gas customers. The Commercial Renewables primarily acquires, builds, develops and operates wind and solar renewable generation throughout the continental United States.

FINANCIAL RATIOS  of  Duke Energy Corporation (DUK)

Valuation Ratios
P/E Ratio 29.2
Price to Sales 2.8
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 8.6
Price to Free Cash Flow -99.9
Growth Rates
Sales Growth Rate 1.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 16.8%
Cap. Spend. - 3 Yr. Gr. Rate 7.4%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 111.1%
Total Debt to Equity 122.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 2.7%
Ret/ On Assets - 3 Yr. Avg. 2.8%
Return On Total Capital 2.5%
Ret/ On T. Cap. - 3 Yr. Avg. 2.7%
Return On Equity 5.3%
Return On Equity - 3 Yr. Avg. 5.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 41.4%
EBITDA Margin - 3 Yr. Avg. 40.6%
Operating Margin 23.4%
Oper. Margin - 3 Yr. Avg. 22.5%
Pre-Tax Margin 16.4%
Pre-Tax Margin - 3 Yr. Avg. 16.9%
Net Profit Margin 9.5%
Net Profit Margin - 3 Yr. Avg. 10.1%
Effective Tax Rate 31%
Eff/ Tax Rate - 3 Yr. Avg. 31.9%
Payout Ratio 108.4%

DUK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DUK stock intrinsic value calculation we used $24521 million for the last fiscal year's total revenue generated by Duke Energy Corporation. The default revenue input number comes from 0001 income statement of Duke Energy Corporation. 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 DUK stock valuation model: a) initial revenue growth rate of 5.4% 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 8.9%, whose default value for DUK is calculated based on our internal credit rating of Duke Energy Corporation, 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 Duke Energy Corporation.
    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 DUK stock the variable cost ratio is equal to 74.9%.

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 DUK 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 Duke Energy Corporation.

Corporate tax rate of 27% is the nominal tax rate for Duke Energy Corporation. 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 DUK 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 DUK are equal to 402.6%.

Life of production assets of 23.1 years is the average useful life of capital assets used in Duke Energy Corporation 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 DUK is equal to 4.3%. 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 - $43817 million for Duke Energy Corporation - 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 726.972 million for Duke Energy Corporation 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 Duke Energy Corporation at the current share price and the inputted number of shares is $65.3 billion.

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