Using the PEG framework with analyst consensus forward EPS growth of 9.6% plus 3.1% dividend yield, Public Service Enterprise Group Incorporated has a fair value of $41.78 based on NTM EPS (FY2026) of $4.37. The current PEG ratio is 1.93.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.4% |
| Dividend Yield | +3.1% |
| Adjusted Growth (clamped 8–25%) | 9.6% |
| Fair P/E | 9.6x |
| NTM EPS (FY2026) | $4.37 |
| Fair Value | $41.78 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.21 | — | — |
| FY2026E | $4.37 | +3.8% | 9 |
| FY2027E | $4.71 | +7.7% | 9 |
| FY2028E | $5.01 | +6.4% | 12 |
| FY2029E | $5.40 | +7.8% | 11 |
| FY2030E | $5.75 | +6.5% | 6 |
5Y Forward EPS CAGR: 6.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-648.0M | $-1.29 | — |
| FY2022 | $1.0B | $2.06 | — |
| FY2023 | $2.6B | $5.13 | +149.0% |
| FY2024 | $1.8B | $3.54 | -31.0% |
| FY2025 | $2.1B | $4.21 | +18.9% |
4Y Historical EPS CAGR: 45.7%
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.