Using the PEG framework with analyst consensus forward EPS growth of 23.8% plus 0.5% dividend yield, Constellation Energy Corporation has a fair value of $278.17 based on NTM EPS (FY2026) of $11.67. The current PEG ratio is 1.05.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 23.3% |
| Dividend Yield | +0.5% |
| Adjusted Growth (clamped 8–25%) | 23.8% |
| Fair P/E | 23.8x |
| NTM EPS (FY2026) | $11.67 |
| Fair Value | $278.17 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.40 | — | — |
| FY2026E | $11.67 | +57.8% | 6 |
| FY2027E | $13.84 | +18.6% | 8 |
| FY2028E | $17.09 | +23.5% | 9 |
| FY2029E | $20.27 | +18.6% | 4 |
| FY2030E | $21.09 | +4.0% | 4 |
5Y Forward EPS CAGR: 23.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-205.0M | $-0.63 | — |
| FY2022 | $-160.0M | $-0.49 | — |
| FY2023 | $1.6B | $5.01 | — |
| FY2024 | $3.7B | $11.90 | +137.5% |
| FY2025 | $2.3B | $7.40 | -37.8% |
4Y Historical EPS CAGR: 49.9%
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.