| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 106.76 | -9 |
| Intrinsic value (DCF) | 5.80 | -95 |
| Graham-Dodd Method | 6.80 | -94 |
| Graham Formula | 72.31 | -38 |
Duke Energy Corporation (NYSE: DUK) is a leading U.S. energy company providing electricity and natural gas services to millions of customers across the Southeast and Midwest. Operating through three key segments—Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables—Duke Energy serves approximately 8.2 million electric customers and 1.6 million natural gas customers. The company boasts a diversified generation portfolio, including coal, hydro, natural gas, nuclear, and renewable energy sources, with a total capacity of over 50,000 MW. Duke Energy is also a major player in renewable energy, with 203 wind, solar, and battery storage facilities totaling 3,554 MW across 22 states. Headquartered in Charlotte, North Carolina, Duke Energy is a regulated utility with a strong focus on sustainability, grid modernization, and clean energy transition, positioning it as a key player in the evolving U.S. energy landscape.
Duke Energy presents a stable investment opportunity due to its regulated utility business model, which provides predictable cash flows and a solid dividend yield (currently $4.18 per share). The company's diversified energy mix and growing renewable portfolio align with long-term decarbonization trends, reducing regulatory risk. However, high debt levels ($85.2 billion) and significant capital expenditures ($12.3 billion in 2024) could pressure financial flexibility. The stock's low beta (0.376) suggests defensive characteristics, making it attractive for risk-averse investors, but growth may be constrained by regulatory frameworks and the capital-intensive nature of utility operations.
Duke Energy's competitive advantage lies in its scale as one of the largest regulated utilities in the U.S., serving a broad geographic footprint with stable, rate-regulated revenue. Its vertically integrated operations (generation, transmission, and distribution) provide cost efficiencies and reliability. The company's early investments in renewables (3,554 MW capacity) position it well for energy transition policies, though it lags behind some peers in renewable penetration. Regulatory relationships in its core Southeast markets are a strength, but rate case approvals remain a key risk. Duke's gas utilities segment provides diversification, but competition from unregulated renewable providers and distributed energy resources (e.g., rooftop solar) poses long-term challenges to its traditional utility model. The company's $12.3 billion annual capex program focuses on grid modernization and clean energy, which should support future rate base growth but requires careful regulatory execution.