Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 4.7% dividend yield, Edison International has a fair value of $48.99 based on NTM EPS (FY2026) of $6.12.
| EPS Growth RateForward | -8.4% |
| Dividend Yield | +4.7% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $6.12 |
| Fair Value | $48.99 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $11.55 | — | — |
| FY2026E | $6.12 | -47.0% | 8 |
| FY2027E | $6.52 | +6.5% | 7 |
| FY2028E | $6.90 | +5.8% | 7 |
| FY2029E | $7.06 | +2.3% | 3 |
| FY2030E | $7.46 | +5.7% | 6 |
5Y Forward EPS CAGR: -8.4%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $925.0M | $2.00 | — |
| FY2022 | $824.0M | $1.60 | -20.0% |
| FY2023 | $1.4B | $3.11 | +94.4% |
| FY2024 | $1.5B | $3.31 | +6.4% |
| FY2025 | $4.6B | $11.55 | +248.9% |
4Y Historical EPS CAGR: 55.0%