Using the PEG framework with analyst consensus forward EPS growth of 8.9% plus 2.6% dividend yield, Ameren Corporation has a fair value of $47.96 based on NTM EPS (FY2026) of $5.36. The current PEG ratio is 2.26.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.4% |
| Dividend Yield | +2.6% |
| Adjusted Growth (clamped 8–25%) | 8.9% |
| Fair P/E | 8.9x |
| NTM EPS (FY2026) | $5.36 |
| Fair Value | $47.96 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.35 | — | — |
| FY2026E | $5.36 | +0.3% | 8 |
| FY2027E | $5.80 | +8.2% | 8 |
| FY2028E | $6.27 | +8.1% | 9 |
| FY2029E | $6.75 | +7.6% | 4 |
| FY2030E | $7.29 | +8.0% | 4 |
5Y Forward EPS CAGR: 6.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $990.0M | $3.84 | — |
| FY2022 | $1.1B | $4.14 | +7.8% |
| FY2023 | $1.2B | $4.38 | +5.8% |
| FY2024 | $1.2B | $4.42 | +0.9% |
| FY2025 | $1.5B | $5.35 | +21.0% |
4Y Historical EPS CAGR: 8.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.