3 models fit RGC Resources Inc. Common Stock and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Silver67
Valued as a utility: Dividend discount, P/E comparison, EV/EBITDA comparison, and Discounted cash flow.
ACCE opinionRGC Resources Inc. Common Stock (RGCO)
Fair value (3 models)
$21.03
ACCE price target
$23.00
Rating
Fairly valued
Horizon
12 months
Fair value published on 19 Oct 2026, 19:04 CEST; previously $23.64 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 19:04 CEST.
Price used: $22.82 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
8.5% above
-7.8% to fair value
ACCE score
48
out of 100
Analysts
0% buy
1 covering
P/E
16.9x
forward 16.5x
1-year return
+6.2%
Dividend yield
3.77%
RGC Resources Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
RGC Resources is a small regulated natural gas utility that distributes gas to residential, commercial and industrial customers in southwestern Virginia and northeastern North Carolina, and it also owns Diversified Energy, a propane and related services business. Its earnings come mostly from rate-regulated distribution, which gives it a defined return on invested capital and a steady, if slow, base. The main lever is capital spending on pipeline replacement and system upgrades, which lifts the rate base and supports earnings growth over time. The case is not yet compelling on the numbers we have: revenue fell 0.9% over the period, the operating margin is a thin 7.9%, and an ROE of 11.7% is adequate but not standout, while the stock trades at 16.8 times trailing and 18.1 times forward earnings, a premium that needs growth to justify. With a market cap of about $236M and no index membership, it is a small-cap regulated name that merits a deeper look mainly if the rate base expansion starts showing up in revenue.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Score down sharply
ACCE score fell from 69 to 48 over 90 days, with quality at 53 and growth at 7. Revenue is down 0.9% year over year and earnings are flat, so the momentum case has weakened.
moderate
Leveraged balance sheet
Debt to equity is 1.31 and free cash flow is only $8M against a $235M market cap, so the company relies on borrowing to fund its capital program.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-10-19 · prices to Oct 23, 2026
Why it could do well
The stock yields 3.8% in dividends, paid while the business keeps earning a return on its equity of 11.7%.
Revenue grew 8.6% a year on average over five years, showing the business has expanded over the long run.
The shares trade at 16.7 times trailing earnings, below the sector median forward multiple of 18.4 times.
Why it could disappoint
Revenue fell 0.9% over the past year, so the recent trend has turned against the business.
Debt equals 1.31 times shareholder equity, which leaves the balance sheet thinly protected if earnings weaken.
The stock trades 8.5% above the model fair value of $21.03, and the consensus of three of four models points lower.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 18, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where RGCO's valuation models land
Price
$22.82
Model fair value
$21.03
Model range
$12.94 to $25.83
Fair value $21.03
Price $22.82
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores