Using the PEG framework with analyst consensus forward EPS growth of 11.0% plus 2.9% dividend yield, Alliant Energy Corporation has a fair value of $37.46 based on NTM EPS (FY2026) of $3.42. The current PEG ratio is 1.87.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.1% |
| Dividend Yield | +2.9% |
| Adjusted Growth (clamped 8–25%) | 11.0% |
| Fair P/E | 11.0x |
| NTM EPS (FY2026) | $3.42 |
| Fair Value | $37.46 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.14 | — | — |
| FY2026E | $3.42 | +8.8% | 5 |
| FY2027E | $3.69 | +7.9% | 4 |
| FY2028E | $3.99 | +8.3% | 6 |
| FY2029E | $4.31 | +7.9% | 5 |
| FY2030E | $4.63 | +7.4% | 3 |
5Y Forward EPS CAGR: 8.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $674.0M | $2.63 | — |
| FY2022 | $686.0M | $2.73 | +3.8% |
| FY2023 | $703.0M | $2.78 | +1.8% |
| FY2024 | $690.0M | $2.69 | -3.2% |
| FY2025 | $810.0M | $3.14 | +16.7% |
4Y Historical EPS CAGR: 4.5%
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.