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If you are wondering whether Duke Energy is priced fairly or if the market is giving you an opportunity, its recent share performance offers a useful starting point.
The stock last closed at US$131.79, with a 0.3% decline over 7 days and a 1.0% decline over 30 days, while the year to date return sits at 12.2% and the 1 year return at 14.7%.
These moves sit against a backdrop of ongoing attention on regulated utilities like Duke Energy, as investors weigh income stability, interest rate expectations and long term infrastructure spending. Recent coverage has focused on how large utilities are positioned in terms of balance sheets, capital investment plans and regulatory relationships, and how these factors can influence the way the market prices their shares.
Duke Energy currently has a valuation score of 3/6. This means some checks suggest the stock may be undervalued while others are more mixed. The sections that follow will compare different valuation methods before finishing with a way to tie those numbers back to the broader investment story.
Find out why Duke Energy’s 14.7% return over the last year is lagging behind its peers.
The Dividend Discount Model estimates what a stock might be worth by projecting future dividends, applying an expected growth rate and discounting those payments back to today.
For Duke Energy, the model uses a recent annual dividend per share of US$4.64, a return on equity of 8.84% and a payout ratio of 88.47%. That leaves a small portion of earnings being retained, which translates into an implied dividend growth rate of about 1.02%, calculated as the product of the retention ratio and return on equity. This relatively modest growth assumption is central to the DDM outcome.
Based on these inputs, the DDM approach points to an estimated intrinsic value of around US$77.82 per share. Compared with the recent share price of US$131.79, this framework suggests Duke Energy is around 69.3% above the DDM estimate, indicating the shares screen as expensive on this specific dividend based model.
Result: OVERVALUED
Our Dividend Discount Model (DDM) analysis suggests Duke Energy may be overvalued by 69.3%. Discover 58 high quality undervalued stocks or create your own screener to find better value opportunities.
DUK Discounted Cash Flow as at Apr 2026
Story continues
For a profitable company like Duke Energy, the P/E ratio is a useful way to gauge how much you are paying for each dollar of earnings. It links directly to what the business is currently earning, which is often a key anchor for income focused investors in regulated utilities.
What counts as a “normal” or “fair” P/E tends to reflect how quickly earnings are expected to grow and how risky those earnings appear. Higher expected growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk usually lines up with a lower P/E.
Duke Energy currently trades on a P/E of 20.91x, compared with the Electric Utilities industry average of 22.25x and a peer group average of 29.84x. Simply Wall St’s Fair Ratio for Duke Energy is 25.03x. This Fair Ratio is a proprietary view of what the P/E could be given the company’s earnings profile, industry, profit margins, market value and identified risks, which makes it more tailored than a simple comparison with peers or the sector averages.
Since Duke Energy’s actual P/E of 20.91x is below the Fair Ratio of 25.03x, the shares screen as undervalued on this earnings based approach.
Result: UNDERVALUED
NYSE:DUK P/E Ratio as at Apr 2026
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Earlier it was mentioned that there is an even better way to understand valuation, so consider Narratives, which let you set out your own story for Duke Energy by linking what you think about its data center load opportunities, grid and storage projects, regulatory setting and risks to a clear forecast for future revenues, earnings, margins and a fair value on Simply Wall St’s Community page. You can then compare that Fair Value with the current price to decide whether the stock looks appealing or not. These Narratives update automatically when new earnings, news or regulatory updates arrive. One investor might build a more confident view around the analyst consensus fair value of about US$138.29, while another could lean toward a lower figure if they place more weight on risks such as capital needs, regulatory changes or distributed energy adoption.
Do you think there’s more to the story for Duke Energy? Head over to our Community to see what others are saying!
NYSE:DUK 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include DUK.
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