Using the PEG framework with analyst consensus forward EPS growth of 15.3% plus 0.6% dividend yield, PG&E Corporation has a fair value of $25.09 based on NTM EPS (FY2026) of $1.65. The current PEG ratio is 0.69.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.7% |
| Dividend Yield | +0.6% |
| Adjusted Growth (clamped 8–25%) | 15.3% |
| Fair P/E | 15.3x |
| NTM EPS (FY2026) | $1.65 |
| Fair Value | $25.09 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.18 | — | — |
| FY2026E | $1.65 | +39.4% | 9 |
| FY2027E | $1.80 | +9.7% | 8 |
| FY2028E | $1.97 | +9.2% | 10 |
| FY2029E | $2.14 | +8.5% | 5 |
| FY2030E | $2.34 | +9.4% | 5 |
5Y Forward EPS CAGR: 14.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-88.0M | $-0.05 | — |
| FY2022 | $1.8B | $0.84 | — |
| FY2023 | $2.3B | $1.05 | +25.0% |
| FY2024 | $2.5B | $1.15 | +9.5% |
| FY2025 | $2.7B | $1.18 | +2.6% |
4Y Historical EPS CAGR: 12.4%
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.