<div id="readability-page-1"><div><div><p>Dominion Energy (D) just stepped further into the future of power, expanding its renewable portfolio and signing an SMR focused memorandum of understanding with Amazon to help meet booming data center and customer demand.</p><p>See our latest analysis for Dominion Energy.</p><p>Even with the Amazon SMR news and steady progress on renewables, Dominion’s 9.25 percent year to date share price return and 16.03 percent one year total shareholder return signal gradually improving momentum rather than a breakout surge.</p><p>If this kind of long term energy transition story interests you, it is also worth exploring fast growing stocks with high insider ownership for ideas where rapid growth and insider conviction are already lining up.</p><p>With shares up by the mid-teens over the past year and trading only modestly below analyst targets, the key question now is whether Dominion still offers upside for long term investors or if the market is already pricing in its future growth.</p><h2>Most Popular Narrative: 7% Undervalued</h2><p>With Dominion Energy last closing at $59.43 against a narrative fair value near $63.93, the valuation case leans in favor of more upside from here.</p><div><blockquote><p><em>Large scale investments in regulated renewables, especially the Coastal Virginia Offshore Wind (CVOW) project, position Dominion to benefit from the accelerating energy transition, earning stable regulated returns and expanding rate base, with a positive impact on long term earnings.</em></p></blockquote></div><p>Read the complete narrative.</p><p>Curious how steady, regulated growth can still support a richer valuation multiple, even as assumptions get nudged lower at the margins? The narrative hinges on carefully tuned forecasts for revenue expansion, rising margins, and moderated future earnings multiples that look more like a quality compounder than a typical utility. Want to see exactly how those moving parts stack up to justify that fair value? The full story connects every assumption.</p><p><strong>Result: Fair Value of $63.93 (UNDERVALUED)</strong></p><p>Have a read of the narrative in full and understand what's behind the forecasts.</p><p>However, that story could fray if CVOW costs climb without full regulatory recovery, or if higher for longer rates make constant capital raises more painful.</p><p>Find out about the key risks to this Dominion Energy narrative.</p><h2>Another Angle on Value</h2><p>Our DCF model paints a far less generous picture, putting Dominion’s fair value closer to $36.73 per share, which would make today’s price look stretched rather than cheap. If the cash flow view is right, are investors leaning too hard on narrative and near term momentum?</p><p>Look into how the SWS DCF model arrives at its fair value.</p><figure><div><div><p><img src="https://imageproxy.pbkrs.com/https://s.yimg.com/ny/api/res/1.2/KxEyoI6RdoRBWJb1Gd8lRQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQyOA--/https://media.zenfs.com/en/simply_wall_st__316/42a3e0ce63e59c2d5328e14f8e955d66?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="960" height="428" original-src="https://imageproxy.pbkrs.com/https://s.yimg.com/ny/api/res/1.2/KxEyoI6RdoRBWJb1Gd8lRQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQyOA--/https://media.zenfs.com/en/simply_wall_st__316/42a3e0ce63e59c2d5328e14f8e955d66"/></p></div></div><p></p><figcaption>D Discounted Cash Flow as at Dec 2025</figcaption><p></p></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Dominion Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 913 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p><h2>Build Your Own Dominion Energy Narrative</h2><p>If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just minutes, Do it your way.</p><p>A great starting point for your Dominion Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.</p><h2>Looking for your next high conviction idea?</h2><p>Set yourself up for smarter decisions by using the Simply Wall St Screener to uncover focused opportunities other investors will only notice after the big moves.</p><ul><li>Capture early stage potential by scanning these 3617 penny stocks with strong financials where improving fundamentals meet attractive entry prices.</li><li>Capitalize on the AI wave by targeting these 25 AI penny stocks positioned at the intersection of automation, data and scalable software models.</li><li>Lock in quality at a discount by filtering for these 913 undervalued stocks based on cash flows that strong cash flow analysis suggests the market is mispricing.</li></ul><p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><p><em>Companies discussed in this article include D.</em></p><p><strong>Have feedback on this article? Concerned about the content? Get in touch with us directly.</strong><em> Alternatively, email editorial-team@simplywallst.com</em></p></div></div></div>

<p>Dominion Energy expands its renewable portfolio and signs an SMR deal with Amazon, boosting investor optimism. Despite a 9.25% YTD share price return, the stock is seen as undervalued with a fair value of $63.93. Large investments in renewables, like the Coastal Virginia Offshore Wind project, support stable returns. However, risks include rising costs and capital challenges. A DCF model suggests a lower fair value of $36.73, questioning the narrative-driven valuation.</p>

Dominion Energy (D) Valuation After Amazon SMR Deal and Renewables Expansion Boost Investor Optimism