DTE Valuation

DTE Energy Co

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134.710

-0.67(-0.495%)1D

Overview
Forecast
Valuation
Earnings

DTE Relative Valuation

DTE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DTE is overvalued; if below, it's undervalued.

Historical Valuation

DTE Energy Co (DTE) is now in the Fair zone, suggesting that its current forward PE ratio of 18.52 is considered Fairly compared with the five-year average of 18.75. The fair price of DTE Energy Co (DTE) is between 125.93 to 156.31 according to relative valuation methord.

Relative Value

Fair Zone

125.93-156.31

Current Price：135.38

Fair

18.52

Trailing

Forward

12.56

EV/EBITDA

DTE Energy Co. (DTE) has a current EV/EBITDA of 12.56. The 5-year average EV/EBITDA is 11.81. The thresholds are as follows: Strongly Undervalued below 9.52, Undervalued between 9.52 and 10.67, Fairly Valued between 12.95 and 10.67, Overvalued between 12.95 and 14.09, and Strongly Overvalued above 14.09. The current Forward EV/EBITDA of 12.56 falls within the Historic Trend Line -Fairly Valued range.

23.07

EV/EBIT

DTE Energy Co. (DTE) has a current EV/EBIT of 23.07. The 5-year average EV/EBIT is 20.52. The thresholds are as follows: Strongly Undervalued below 16.19, Undervalued between 16.19 and 18.36, Fairly Valued between 22.69 and 18.36, Overvalued between 22.69 and 24.85, and Strongly Overvalued above 24.85. The current Forward EV/EBIT of 23.07 falls within the Overvalued range.

2.00

DTE Energy Co. (DTE) has a current PS of 2.00. The 5-year average PS is 1.75. The thresholds are as follows: Strongly Undervalued below 1.07, Undervalued between 1.07 and 1.41, Fairly Valued between 2.10 and 1.41, Overvalued between 2.10 and 2.44, and Strongly Overvalued above 2.44. The current Forward PS of 2.00 falls within the Historic Trend Line -Fairly Valued range.

7.95

P/OCF

DTE Energy Co. (DTE) has a current P/OCF of 7.95. The 5-year average P/OCF is 7.86. The thresholds are as follows: Strongly Undervalued below 5.72, Undervalued between 5.72 and 6.79, Fairly Valued between 8.94 and 6.79, Overvalued between 8.94 and 10.01, and Strongly Overvalued above 10.01. The current Forward P/OCF of 7.95 falls within the Historic Trend Line -Fairly Valued range.

-23.72

P/FCF

DTE Energy Co. (DTE) has a current P/FCF of -23.72. The 5-year average P/FCF is -39.23. The thresholds are as follows: Strongly Undervalued below -299.25, Undervalued between -299.25 and -169.24, Fairly Valued between 90.78 and -169.24, Overvalued between 90.78 and 220.79, and Strongly Overvalued above 220.79. The current Forward P/FCF of -23.72 falls within the Historic Trend Line -Fairly Valued range.

DTE Energy Co (DTE) has a current Price-to-Book (P/B) ratio of 2.43. Compared to its 3-year average P/B ratio of 2.23 , the current P/B ratio is approximately 8.75% higher. Relative to its 5-year average P/B ratio of 2.25, the current P/B ratio is about 7.98% higher. DTE Energy Co (DTE) has a Forward Free Cash Flow (FCF) yield of approximately -2.28%. Compared to its 3-year average FCF yield of -4.27%, the current FCF yield is approximately -46.67% lower. Relative to its 5-year average FCF yield of -3.13% , the current FCF yield is about -27.21% lower.

2.43

P/B

Median3y

2.23

Median5y

2.25

-2.28

FCF Yield

Median3y

-4.27

Median5y

-3.13

Competitors Valuation Multiple

The average P/S ratio for DTE's competitors is 2.20, providing a benchmark for relative valuation. DTE Energy Co Corp (DTE) exhibits a P/S ratio of 2.00, which is -9.46% above the industry average. Given its robust revenue growth of 18.92%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CenterPoint Energy Inc

2.71

2.05%

25.11B

Performance Decomposition

Market capitalization of DTE increased by 12.32% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.80 to 19.77.

The secondary factor is the Revenue Growth, contributed 18.92%to the performance.

Overall, the performance of DTE in the past 1 year is driven by P/E Change. Which is more unsustainable.

18.92%

2.88B → 3.42B

Revenue Growth

-40.18%

11.20 → 6.70

Margin Expansion

33.58%

14.80 → 19.77

P/E Change

12.32%