Using the PEG framework with analyst consensus forward EPS growth of 19.5% plus 3.5% dividend yield, FirstEnergy Corp. has a fair value of $53.12 based on NTM EPS (FY2026) of $2.73. The current PEG ratio is 0.94.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 16.0% |
| Dividend Yield | +3.5% |
| Adjusted Growth (clamped 8–25%) | 19.5% |
| Fair P/E | 19.5x |
| NTM EPS (FY2026) | $2.73 |
| Fair Value | $53.12 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.76 | — | — |
| FY2026E | $2.73 | +54.8% | 6 |
| FY2027E | $2.94 | +7.9% | 6 |
| FY2028E | $3.17 | +7.8% | 6 |
| FY2029E | $3.37 | +6.4% | 5 |
| FY2030E | $3.69 | +9.5% | 3 |
5Y Forward EPS CAGR: 16.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.3B | $2.35 | — |
| FY2022 | $406.0M | $0.71 | -69.8% |
| FY2023 | $1.1B | $1.92 | +170.4% |
| FY2024 | $978.0M | $1.70 | -11.5% |
| FY2025 | $1.0B | $1.76 | +3.5% |
4Y Historical EPS CAGR: -7.0%
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.