Dominion Energy (D) Could Be 11% Undervalued Following Reaffirmed 2026 Guidance

Why Dominion Energy is back on investor radar

Recent analyst commentary has zeroed in on Dominion Energy (D) after the utility reaffirmed its 2026 earnings guidance and continued to cite strong data center related power demand as a key driver.

That combination of steady long term projections, a record of prior earnings beats, and growing interest from large scale computing customers has made sentiment more constructive. It has also drawn fresh attention to how the stock reflects those expectations today.

Dominion Energy’s share price has moved to US$63.56 after a 1-day share price return of 1.11% and a 7-day share price return of 3.11%, even as the 90-day share price performance declined 10.53%, leaving the year-to-date share price return at 7.29% and the 1-year total shareholder return at 9.40%, which hints at momentum rebuilding as investors react to reaffirmed guidance and ongoing data center demand.

Scan for other utilities benefiting from data center demand by reviewing the hand-picked 41 power grid technology and infrastructure stocks that aligns with this Dominion Energy story.

Bulls view Dominion Energy as a regulated utility priced too cautiously given its data center exposure. Bears argue the recent rebound already reflects that story. The valuation work now has to show which side the numbers support.

Most Popular Narrative: 11% Undervalued

On the most followed narrative, Dominion Energy’s fair value of $71.64 sits above the last close at $63.56. This puts the current share price on the cautious side of that story and frames data center demand and capital spending as the swing factors.

Surging large-load demand in Dominion Energy’s Virginia territory, including over 53 GW of data center capacity in the pipeline and a series of record peak days in 2026, supports ongoing grid and generation buildout that can lift regulated revenue and earnings as those assets enter rate base.

See why 55 investors see Dominion Energy as 11% undervalued.

Result: Fair Value of $71.64 (UNDERVALUED)

Still, the Dominion Energy story could be knocked off course if regulators push back on the proposed NextEra merger, or if Coastal Virginia Offshore Wind faces further cost or timing setbacks.

Find out about the key risks to this Dominion Energy narrative.

Another View: What Dominion Energy’s P/E Is Saying

The 11% undervaluation story relies on fair value models. On a simple P/E basis, Dominion Energy trades at 22.3x earnings, above the US Integrated Utilities average of 20.4x and above its own fair ratio of 22.3x. This points to far less obvious upside. Which signal do you trust more right now?

For a closer look at how this earnings multiple compares with peers and what that gap could mean for your risk and return balance, review the See what the numbers say about this price — find out in our valuation breakdown..

Next Steps

Sentiment around Dominion Energy is clearly divided, with some investors focusing on upside and others highlighting caution. Move quickly and test the figures yourself before views harden. To see how the positives stack up against the concerns in one place, review the full breakdown of 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Dominion Energy?

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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.

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