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DTE Energy Holding Co (NYSE:DTE)
Intrinsic Value (DCF Projected)
$57.83 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today, DTE Energy Holding Co's DCF projected intrinsic value is $57.83. The stock price of DTE Energy Holding Co is $76.57. Therefore, DTE Energy Holding Co's Price to Intrinsic Value (DCF Projected) Ratio of today is 1.3.

DTE' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 0.66   Max: 1.84
Current: 1.3

0.66
1.84

During the past 13 years, the highest Price to Intrinsic Value (DCF Projected) Ratio of DTE Energy Holding Co was 1.84. The lowest was 0.66. And the median was 1.09.

DTE's Price to Intrinsic Value (DCF Projected) is ranked higher than
88% of the 860 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.49 vs. DTE: 1.30 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Here DTE Energy Holding Co's FCF(6 year avg) is calculate as

DTE Energy Holding Co Quarterly Data

201112201203201206201209201212201303201306201309201312201403
total_freecashflow 6722894185-118215147-18-6635
200906200909200912201003201006201009201012201103201106201109
total_freecashflow 175167-71578585535452-1217
200806200809200812200903
total_freecashflow 318-859164513

Add all the Free Cash Flow together and divide 6 will get DTE Energy Holding Co's FCF(6 year avg) = $393.17.

DTE Energy Holding Co's DCF Projected Intrinsic Value for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Mar14)*0.8)/Shares Outstanding
=(9.52035159596*393.166666667+8117*0.8)/177.000
=57.83

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy medium after taking the above ideas into consideration. Learn more here.

DTE Energy Holding Co's Price to DCF Projected Intrinsic Value Ratio for today is calculated as

Price to DCF Projected Intrinsic Value=Share Price/DCF Projected Intrinsic Value
=76.57/57.8343779801
=1.32

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

DTE Energy Holding Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
iv_dcf_share 32.4829.1926.3430.3332.9340.4145.4952.5755.7861.34

DTE Energy Holding Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
iv_dcf_share 52.5752.5654.0657.1355.7857.0756.4762.3361.3457.83
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