DTE Energy

Methodology

DTE Energy's regulated electric and gas utility operations generate highly predictable earnings tied to allowed returns on rate base investments. The Michigan-focused utility provides essential service with stable demand and regulatory oversight. Fair value calculations work reliably when accounting for low-single-digit earnings growth from infrastructure investment and rate base expansion.

Methodology

DTE typically trades at PEG ratios between 1.5-2.5x, reflecting utility sector valuations that balance earnings predictability with limited growth potential. The company's renewable energy investments and infrastructure modernization support steady but unexciting growth. PEG works reasonably well though utilities trade primarily on dividend yields rather than earnings multiples.

Methodology

DTE pays a substantial dividend yielding 3-4% that drives total return for this defensive utility stock, making PEGY critical for valuation. The regulated business model ensures dividend sustainability and modest growth over time. Total return for utilities relies heavily on yield component, with PEGY providing more complete picture than growth-focused PEG metrics.