* Note: Prices are in Million (M) USD.
Description:
DTE Energy Company, headquartered in Detroit, Michigan, is a leading diversified energy provider in the United States and Canada, focusing on sustainable and reliable energy solutions. Originally established as Detroit Edison, DTE has expanded its operations to encompass electricity generation, natural gas distribution, and substantial investments in renewable energy. The company is at the forefront of the transition to clean energy, emphasizing innovative technologies and infrastructure enhancements, such as smart grid developments, to reduce carbon emissions and improve energy efficiency. DTE's strategic commitment to sustainability and innovation makes it an attractive investment opportunity for institutional investors seeking exposure to the rapidly evolving energy sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $79 M
Debt : $25,049 M
EBITDA : $4,261 M
Net Debt (Debt - Cash): $24,970 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Utilities
Industry: Utilities - regulated electric
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.98
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $12,457 M
Revenue 5 Years Ago (2019-12-31): $12,168 M
Total Growth over 5 Years: 2.4%
5-Year Revenue CAGR (Historical): 0.5%
Forward 5-Year CAGR (Tapered): 0.4%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $207 M
Share Count 5 Years Ago (2020-12-31): $193 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $7.72
Trailing 12-Month Earnings Per Share (EPS): $7.22
Average Earnings Per Share (EPS): $7.47
Dividend Per Share (DPS): $4
Payout Ratio: 58%
Dividend Yield: 3.39%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 10.3%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $134.38
52-Week Low: $112.50
Threshold Price (15% Above 52-Week Low): $129.38
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $26,976 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 17 points to above DTE Energy Company (DTE) stock.
Last 20 Years Avg PE
11.56, Fair Value PE
12, Industry Based PE
15, ROE Based PE
10.26, Risk-Free Anchored PE (25% MoS)
18.12. Based on these 5 values, average assigned is
13.39. Value-Trades has assined P/E value
13.39. An average (Current Year EPS + Next Year EPS) earning per share is
$7.4718.
Fair value using multiple P/Es (blended): $100.03 (PE 13.39 × EPS $7.47)
So the Final Fair Value is: $100.03
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $7.47
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 22.59 | $168.79 |
| 20 Yrs Avg-PE | 11.56 | $86.37 |
| Value-Trades Assigned | 13.39 | $100.05 |
