Using the industry peer median P/E multiple (trailing + forward), PPL Corporation (PPL) has a fair value of $36.32 based on 7 comparable companies in the Regulated Electric industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| PPL CorporationPPL | 27,924 | 23.4x | 19.2x |
| The Southern CompanySO | 106,555 | 24.3x | 20.9x |
| Atmos Energy CorporationATO | 30,270 | 24.5x | 22.1x |
| DTE Energy CompanyDTE | 30,063 | 20.5x | 18.7x |
| Ameren CorporationAEE | 30,016 | 20.3x | 20.2x |
| FirstEnergy Corp.FE | 28,954 | 28.5x | 18.4x |
| Eversource EnergyES | 25,539 | 14.9x | 14.0x |
| CMS Energy CorporationCMS | 23,386 | 21.6x | 19.7x |
| Industry Median | 21.6x | 19.7x | |
| (*) Profit after tax | 1,181 | 1,453 | |
| Equity Value | 25,534 | 28,589 | |
| (/) Outstanding shares | 745 | 745 | |
| Fair Price | $34 | $38 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.