RGC Resources Inc (RGCO) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of RGC Resources Inc stock $10.49, price $23.19, that is 54.8% below the price, quality 48 out of 100. Rating: strongly overvalued. Calculated from audited financials with 23 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $13.74 – $26.07 · fair‑value band $9.46 – $12.51 · the $23.19 price screens above the $10.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities.
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It operates approximately 1,184 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates eleven metering stations. The company also produces biogas. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.
Stock analysis
RGC Resources Inc (RGCO) currently trades at $23.19, while our model-based Fair Value estimate is $10.49, 55% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $18.19 per share, and 0 of the 22 models we run sit above the $23.19 price.
Bear case: the DCF Models group reads lowest at $3.33, and 22 of the 22 models stay below the price. Data coverage for this calculation is high.
Scenario range: $9.46 (bear) to $12.51 (bull), the price of $23.19 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 48/100 (below-average quality), in the Utilities sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
RGC Resources Inc reported revenue of $95.3M in FY2025 versus $75.2M in FY2021, a compound +6.1%/yr. Reported net income was $13.3M in FY2025, compounding +7.1%/yr from FY2021.
Key figures
Market cap $242M Micro · P/E ratio 16.9 · P/S ratio 2.26 · EPS (TTM) $1.37 · Dividend yield 3.7% · Net margin 13.1% · Return on equity 11.7% · Return on assets (EBIT) 5.3% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 11% below its 52-week high and 16% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −21% fair-value upside, at −55%, RGCO screens richer than that median.
Fair Value models
Bear$9.46Fair Value $10.49Bull$12.51
Price $23.19 · Downside -54.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($0.5100 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 3 officers or directors bought shares worth $191,860, most recently on Sep 24, 2026. Buying cluster
BuyJohn B Williamson IIIDirector5× since Sep 1, 2026: 5,624 shares, avg. $21.13$118,819Sep 24, 2026
BuyRobert B JohnstonDirector4× since Aug 18, 2026: 2,670 shares, avg. $21.00$56,067Sep 23, 2026
BuyPaul W NesterPresident & CEO, Director2× since Sep 10, 2026: 800 shares, avg. $21.22$16,974Sep 23, 2026
Plan buyLawrence T. OliverSenior VP and Secretary12× since Dec 1, 2025: 116 shares, avg. $22.43$2,600Nov 2, 2026
Plan buyChristen Brooke MilesVP, Human Resources12× since Dec 1, 2025: 58 shares, avg. $22.43$1,300Nov 2, 2026
Plan buyThomas Patrick FurcronVP, Field Operations4× since Dec 1, 2025: 88 shares, avg. $22.02$1,935Mar 2, 2026
Plus 30 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+4.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+1.1%
Dividend (yield on the price)3.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.1.1% vs 6.0%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.19% → 19%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+30.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +27.2% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Utilities - Regulated Gas · 107 stocks
Beats the industry median on 5/15 measures
Overall it trails its industry peers.
Valuation
Quality Score48 · Below median
Fair Value upside−54.8% · Bottom 25%
Profitability
Return on equity (12 months)11.7% · Above median
Return on assets4.0% · Above median
Net margin (12 months)13.1% · Top 25%
Operating margin (12 months)7.9% · Below median
Growth and dividend
Revenue growth (quarter YoY)−0.9% · Below median
Dividend yield (12 months)3.7% · Above median
Balance sheet
Debt / equity1.28× · Highest 25%
Valuation Multiplesvs Utilities - Regulated Gas median · lower = cheaper
P/E (12 months)16.9× · Pricier than median
P/B2.13× · Priciest 25%
P/S (12 months)2.26× · Pricier than median
Price / free cash flow (fiscal year)29.4× · Pricier than median
EV/EBITDA12.3× · Priciest 25%
PEG1.29× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 31
FUTURE (revenue growth)0· sector 16
PAST (return on equity)47· sector 34
HEALTH (low debt)36· sector 82
DIVIDEND (yield)74· sector 69
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is RGC Resources Inc (RGCO) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $10.49 versus a price of $23.19, about 55% lower (overvalued).
What is the fair value of RGCO?
Our model-based fair value for RGC Resources Inc is $10.49 (as of Nov 8, 2026), built from audited fundamentals. The current price: $23.19.
What is the quality score of RGCO?
RGC Resources Inc has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for RGC Resources Inc (RGCO)?
Our model-based price target is the fair value of $10.49 (as of Nov 8, 2026) from 23 valuation models. Cautious scenario $9.46, optimistic scenario $12.51. It is a calculation from audited fundamentals, not an analyst target.
What is the RGC Resources Inc stock forecast for 2026?
Our models put fair value at $10.49, about 55% lower versus a price of $23.19 (overvalued). Cautious scenario $9.46, optimistic scenario $12.51. The calculation is refreshed regularly with new filings.
What is the revenue of RGC Resources Inc (RGCO)?
RGC Resources Inc reported trailing-twelve-month revenue of about $107M (latest available figure, as of Nov 8, 2026).
Does RGC Resources Inc pay a dividend?
RGC Resources Inc currently shows a dividend yield of 3.71% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of RGC Resources Inc (RGCO) and when is the ex-dividend date?
RGC Resources Inc pays a dividend of $0.86 per share a year, a dividend yield of 3.7%. The last ex-dividend date was Oct 16, 2026. A dividend has been paid every year since at least 1994. The payout ratio is 62.8% of earnings. Free cash flow covers the dividend 0.92 times. Our assessment: Sustainable. Payout and cash coverage both look sustainable.
What growth is priced into RGC Resources Inc (RGCO)?
For today's price to be fair in a discounted-cash-flow model, RGC Resources Inc would have to grow free cash flow by +30.2 % per year for five years (discount rate 11.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.8 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of RGCO use?
Our models discount RGC Resources Inc at 11.2 %: a base by market capitalisation (micro), damped by beta 0.49, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For RGC Resources Inc that is +30.2 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.2 %) and the same formula as our fair value.
How much growth has RGC Resources Inc (RGCO) delivered so far?
Over the past 5 years revenue at RGC Resources Inc grew +6.8 % a year. The price currently implies free-cash-flow growth of +30.2 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of RGC Resources Inc (RGCO) growing?
The median revenue growth in the sector is +4.8 % a year. That is the yardstick for the growth priced into RGC Resources Inc (+30.2 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of RGC Resources Inc (RGCO)?
The free-cash-flow yield on the price is 3.40 %: that much free cash flow RGC Resources Inc produces per unit of market value. When it exceeds the discount rate of our models (11.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of RGC Resources Inc (RGCO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RGC Resources Inc it is $10.49 per share (as of Nov 8, 2026), against a price of $23.19. It is the blended result of 23 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is RGC Resources Inc stock overvalued or undervalued in 2026?
As of Nov 8, 2026, RGCO trades above its calculated fair value: price $23.19, fair value $10.49, a gap of about −55% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RGCO?
No. The price is what the market pays today ($23.19); the fair value is what the company's own numbers justify ($10.49). For RGC Resources Inc the two are $12.70 per share apart. That gap is exactly why we show both numbers side by side.
How much is RGC Resources Inc worth?
The market values RGC Resources Inc at about $242M (market capitalisation, as of Nov 8, 2026). Per share that is $23.19; our models calculate a fair value of $10.49 per share.
What do the bullish and bearish scenarios say about RGCO?
Our models span a range for RGC Resources Inc: cautious scenario $9.46, base $10.49, optimistic $12.51 per share (as of Nov 8, 2026, price $23.19). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RGCO?
RGC Resources Inc trades at a price-to-earnings ratio of 16.9 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $10.49 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2017 to 2025), reported earnings, FY2025 ex one-offs: 19.0. Other multiples: PEG 1.3, P/B 2.1, P/S 2.3, EV/EBITDA 12.3.
What is the PEG ratio of RGCO?
The PEG ratio of RGC Resources Inc is 1.29 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of RGC Resources Inc (RGCO)?
Balance-sheet figures for RGC Resources Inc (as of Nov 8, 2026): return on equity 11.7%, debt of 1.28 per unit of equity. They feed the Quality Score of 48/100, which measures business quality independently of the share price.
How far is RGCO from its 52-week high?
RGC Resources Inc trades at $23.19, about 11% below its 52-week high of $26.07 and 16% above the low of $19.95 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $10.49 is for.
Which stocks are comparable to RGC Resources Inc?
From the same area (Utilities) we also value Naturgy Energy Group, Atmos Energy Corporation, Snam S.p.A, NiSource Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is RGC Resources Inc stock attractive at the current price?
The data as of Nov 8, 2026: price $23.19, calculated fair value $10.49 (−55%), Quality Score 48/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RGCO calculated?
We run RGC Resources Inc through 23 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $10.49 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. RGC Resources Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of RGC Resources Inc (RGCO)?
The closing price on Nov 6, 2026 was $23.19. Our model-based fair value is $10.49, about 55% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RGC Resources Inc right now?
The price sits above even our optimistic bull case ($12.51). The favourable scenario is already priced in. Weak quality (48/100) and above fair value at the same time, the margin of safety is missing on both counts.
Where does the earnings growth of RGC Resources Inc (RGCO) come from?
Earnings per share at RGC Resources Inc grew +5.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share −0.4 %, EBIT margin +2.6 %, tax rate +2.4 %, residual (interest, one-offs) +1.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of RGC Resources Inc
How large is the market capitalisation of RGC Resources Inc (RGCO)?
The market capitalisation of RGC Resources Inc is $242M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of RGC Resources Inc (RGCO)?
The price-to-sales ratio of RGC Resources Inc is 2.26 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of RGC Resources Inc (RGCO)?
Earnings per share at RGC Resources Inc are $1.37 (price ÷ EPS = P/E 16.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of RGC Resources Inc (RGCO)?
The dividend yield of RGC Resources Inc is 3.7% (payout 62.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of RGC Resources Inc (RGCO)?
The net margin of RGC Resources Inc is 13.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of RGC Resources Inc (RGCO)?
The return on equity (ROE) of RGC Resources Inc is 11.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of RGC Resources Inc (RGCO)?
On an EBIT basis the return on assets of RGC Resources Inc is 5.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of RGC Resources Inc (RGCO)?
The operating margin of RGC Resources Inc is 7.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RGC Resources Inc (RGCO)?
Revenue at RGC Resources Inc is growing −0.9% versus a year earlier (3y avg +4.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net debt does RGC Resources Inc (RGCO) carry?
The net debt of RGC Resources Inc is $147M (fiscal year 2025, ≈ 17.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 8, 2026