Using the PEG framework with analyst consensus forward EPS growth of 13.0% plus 2.3% dividend yield, Entergy Corporation has a fair value of $57.00 based on NTM EPS (FY2026) of $4.39. The current PEG ratio is 1.80.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.7% |
| Dividend Yield | +2.3% |
| Adjusted Growth (clamped 8–25%) | 13.0% |
| Fair P/E | 13.0x |
| NTM EPS (FY2026) | $4.39 |
| Fair Value | $57.00 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.91 | — | — |
| FY2026E | $4.39 | +12.4% | 12 |
| FY2027E | $4.93 | +12.2% | 12 |
| FY2028E | $5.49 | +11.4% | 12 |
| FY2029E | $6.03 | +9.9% | 11 |
| FY2030E | $6.49 | +7.5% | 6 |
5Y Forward EPS CAGR: 10.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.1B | $2.77 | — |
| FY2022 | $1.1B | $2.69 | -2.9% |
| FY2023 | $2.4B | $5.55 | +106.3% |
| FY2024 | $1.1B | $2.45 | -55.9% |
| FY2025 | $1.8B | $3.91 | +59.6% |
4Y Historical EPS CAGR: 9.0%
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.