Using the PEG framework with analyst consensus forward EPS growth of 10.3% plus 4.3% dividend yield, Eversource Energy has a fair value of $49.89 based on NTM EPS (FY2026) of $4.87. The current PEG ratio is 1.36.
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 | 6.0% |
| Dividend Yield | +4.3% |
| Adjusted Growth (clamped 8–25%) | 10.3% |
| Fair P/E | 10.3x |
| NTM EPS (FY2026) | $4.87 |
| Fair Value | $49.89 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.56 | — | — |
| FY2026E | $4.87 | +6.7% | 8 |
| FY2027E | $5.12 | +5.3% | 8 |
| FY2028E | $5.43 | +5.9% | 8 |
| FY2029E | $5.71 | +5.2% | 7 |
| FY2030E | $6.09 | +6.8% | 7 |
5Y Forward EPS CAGR: 6.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.2B | $3.54 | — |
| FY2022 | $1.4B | $4.05 | +14.4% |
| FY2023 | $-442.2M | $-1.27 | -131.4% |
| FY2024 | $811.7M | $2.27 | — |
| FY2025 | $1.7B | $4.56 | +100.9% |
4Y Historical EPS CAGR: 6.5%
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.