Based on the provided data, I'll analyze whether Dominion Energy (D) is overvalued.
Valuation Analysis: Dominion Energy's current PE ratio of 21.27x is relatively high compared to its historical levels, suggesting some degree of overvaluation from an earnings perspective. The EV/EBITDA ratio of 13.53x indicates moderate valuation levels for a utility company.
Financial Health: The company's debt-to-equity ratio has increased to 156.28%, showing elevated leverage levels. The declining current ratio from 1.05 to 0.74 over recent quarters indicates deteriorating liquidity position.
Recent Performance: The stock recently experienced a 4.2% drop on February 4, 2025, due to a 9% cost increase in its Coastal Virginia Offshore Wind project, raising total expenses to $10.7 billion. This unexpected cost escalation suggests potential future earnings pressure.
Analyst Consensus: Among 18 analysts covering the stock, the consensus is "Hold" with only three "Strong Buy" ratings. The mean price target of $59.27 suggests the stock is currently fairly valued at current levels.
Growth Metrics: While Q3 2024 showed improved net margin of 24.54% compared to previous quarters, the rising operational costs and increasing debt levels raise concerns about sustainable growth.
Based on these factors, Dominion Energy appears moderately overvalued at current levels, primarily due to its high PE ratio, increasing debt levels, and recent project cost overruns that could impact future profitability.