Using the PEG framework with analyst consensus forward EPS growth of 13.4% plus 2.5% dividend yield, NextEra Energy, Inc. has a fair value of $53.66 based on NTM EPS (FY2026) of $4.02. The current PEG ratio is 1.69.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.9% |
| Dividend Yield | +2.5% |
| Adjusted Growth (clamped 8–25%) | 13.4% |
| Fair P/E | 13.4x |
| NTM EPS (FY2026) | $4.02 |
| Fair Value | $53.66 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.29 | — | — |
| FY2026E | $4.02 | +22.2% | 13 |
| FY2027E | $4.38 | +8.9% | 13 |
| FY2028E | $4.74 | +8.3% | 13 |
| FY2029E | $5.13 | +8.1% | 12 |
| FY2030E | $5.51 | +7.6% | 6 |
5Y Forward EPS CAGR: 10.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.6B | $1.81 | — |
| FY2022 | $4.1B | $2.10 | +15.7% |
| FY2023 | $7.3B | $3.60 | +71.8% |
| FY2024 | $6.9B | $3.37 | -6.4% |
| FY2025 | $6.8B | $3.29 | -2.4% |
4Y Historical EPS CAGR: 16.1%
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.