US Equities Analysis

DUK — Duke Energy

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 25.51%
Profit Margins 15.71%
Return on Equity 9.66%
Return on Assets 2.78%
Free Float 0.78B
Dividend Yield 3.32%
Short Int % Utilisation 2.23%

2.2 Growth

Metric Value
Revenue Growth 11.3%
Free Cash Flow -2.25B
EBITDA 11.5 (Ratio)
Enterprise Value 189.54B
EV/Revenue 5.79
EV/EBITDA 11.5

Revenue growth of 11.3% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 5.19%
Risk / Std Dev (Ann.)* 15.93%
1-Year Price Return* 3.84%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $123.92
52-Week Range $113.90 – $134.49
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $32.24B
Prior annual revenue $30.36B
EBIT $9.35B
Tax rate 11.24%
NOPAT = EBIT × (1 − tax rate) $8.30B
Forecast start-growth basis 6.19%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $8.30B
Add: depreciation & amortisation $7.70B
Less: capital expenditure -$14.02B
Less/(add): working-capital cash-flow movement -$616.00M
Current unlevered FCFF $1.36B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 6.19% $8.81B $8.18B -$14.89B -$654.15M $1.44B $1.41B
2 5.27% $9.27B $8.61B -$13.91B -$688.62M $3.29B $3.04B
3 4.35% $9.68B $8.99B -$12.67B -$718.55M $5.27B $4.64B
4 3.42% $10.01B $9.29B -$11.20B -$743.15M $7.36B $6.15B
5 2.50% $10.26B $9.53B -$9.53B -$761.73M $9.50B $7.54B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.37
Cost of equity 6.75%
Pre-tax cost of debt 4.13%
WACC 5.26%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $352.57B
Implied terminal EV / EBITDA 16.72x
Terminal value as % of enterprise value 92.30%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $22.78B
Present value of terminal value $272.84B
Indicated enterprise value $295.62B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $295.62B
Less: gross interest-bearing debt $90.87B
Add: cash and equivalents $245.00M
Add: affiliate investments $0.00
Less: minority interests $1.18B
Indicated common equity value $203.82B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 777,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price $124.81
DCF indicative value per share $262.31
Indicative value vs. market price 110.18%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration review required
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 1/4 evidenced checks
Lynch-inspired balance-and-growth checks 1/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:30:49.518045 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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