Using the PEG framework with analyst consensus forward EPS growth of 12.6% plus 3.1% dividend yield, WEC Energy Group, Inc. has a fair value of $70.55 based on NTM EPS (FY2026) of $5.59. The current PEG ratio is 1.62.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 9.5% |
| Dividend Yield | +3.1% |
| Adjusted Growth (clamped 8–25%) | 12.6% |
| Fair P/E | 12.6x |
| NTM EPS (FY2026) | $5.59 |
| Fair Value | $70.55 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.83 | — | — |
| FY2026E | $5.59 | +15.8% | 10 |
| FY2027E | $6.00 | +7.3% | 10 |
| FY2028E | $6.49 | +8.2% | 11 |
| FY2029E | $7.02 | +8.1% | 5 |
| FY2030E | $7.61 | +8.4% | 5 |
5Y Forward EPS CAGR: 9.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.3B | $4.11 | — |
| FY2022 | $1.4B | $4.45 | +8.3% |
| FY2023 | $1.3B | $4.22 | -5.2% |
| FY2024 | $1.5B | $4.83 | +14.5% |
| FY2025 | $1.6B | $4.83 | +0.0% |
4Y Historical EPS CAGR: 4.1%
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.