Using the PEG framework with analyst consensus forward EPS growth of 13.2% plus 2.8% dividend yield, PPL Corporation has a fair value of $25.81 based on NTM EPS (FY2026) of $1.95. The current PEG ratio is 1.45.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.4% |
| Dividend Yield | +2.8% |
| Adjusted Growth (clamped 8–25%) | 13.2% |
| Fair P/E | 13.2x |
| NTM EPS (FY2026) | $1.95 |
| Fair Value | $25.81 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.60 | — | — |
| FY2026E | $1.95 | +21.8% | 8 |
| FY2027E | $2.11 | +8.5% | 8 |
| FY2028E | $2.28 | +8.0% | 9 |
| FY2029E | $2.46 | +7.5% | 4 |
| FY2030E | $2.63 | +7.0% | 4 |
5Y Forward EPS CAGR: 10.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-1.5B | $-1.93 | — |
| FY2022 | $756.0M | $1.02 | — |
| FY2023 | $740.0M | $1.00 | -2.0% |
| FY2024 | $888.0M | $1.20 | +20.0% |
| FY2025 | $1.2B | $1.60 | +33.3% |
4Y Historical EPS CAGR: 17.1%
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.