Using the PEG framework with analyst consensus forward EPS growth of 11.1% plus 2.8% dividend yield, CMS Energy Corporation has a fair value of $42.93 based on NTM EPS (FY2026) of $3.88. The current PEG ratio is 1.78.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.2% |
| Dividend Yield | +2.8% |
| Adjusted Growth (clamped 8–25%) | 11.1% |
| Fair P/E | 11.1x |
| NTM EPS (FY2026) | $3.88 |
| Fair Value | $42.93 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.53 | — | — |
| FY2026E | $3.88 | +9.9% | 9 |
| FY2027E | $4.18 | +7.9% | 8 |
| FY2028E | $4.51 | +7.8% | 8 |
| FY2029E | $4.86 | +7.9% | 7 |
| FY2030E | $5.24 | +7.8% | 7 |
5Y Forward EPS CAGR: 8.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.4B | $4.66 | — |
| FY2022 | $837.0M | $2.85 | -38.8% |
| FY2023 | $887.0M | $3.01 | +5.6% |
| FY2024 | $1.0B | $3.33 | +10.6% |
| FY2025 | $1.1B | $3.53 | +6.0% |
4Y Historical EPS CAGR: -6.7%
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.