Duke Energy Essay

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Pages: 5

Duke Energy Corporation
Background
Duke Energy Corporation is a Fortune 500 company publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol DUK. Headquartered in Charlotte, North Carolina, Duke Energy is a company focused on electric power and gas generation and distribution operations for services in the Americas – including a growing portfolio of renewable energy assets. They have approximately 35,000 megawatts of electric generating capacity in the Carolinas and the Midwest, and natural gas distribution services in

2009 was a year of recession for the economy as well as the company as gross revenue and net income dropped through the year. Earnings per share have steadily risen over the last three years as the EPS began at 1.21 in 2008 and there is a current forecast of 1.54 for the company. 2008 2009 2010 1/3/5 Years
Revenue 13.2 B 12.7B 14.2B
Net Income 1.3B 1.07B 1.32B
EPS 1.21 1.22 1.43
P/E 13.73/14.28/15.20
P/E/G 6.24/4.84/4.51
Intrinsic Value: Price: Valuation:
$25.00 $19.33 Undervalued Buy

There are also several key financial ratios to compare to Duke Energy Corporation. These ratios measure the current liquidity of the company as well as its ability to pay its short term debt. It also measures their profitability margin as well as the return on equity and assets. DUK AES CEG PGN
Current Ratio 1.60 .77 1.97 1.18
Quick Ratio .76 .46 1.55 .57
Financial Leverage 2.62 3.70 2.56 3.27
Debt/Equity .80 1.14 .57 1.20