PEG
Public Service Enterprise Group Incorporated
$72.11
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 7.1% above fair value
You pay
$72.11
Bear
$58.94
Fair
$67.36
Bull
$75.78
Bear
$58.94
-18.3%
$4.21 × 14x P/E
Fair
$67.36
-6.6%
$4.21 × 16x P/E
Bull
$75.78
+5.1%
$4.21 × 18x P/E
Adjust Assumptions
16.0x
4.21$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
17.1x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (33 analysts)
$82.00
Divergence from AlphaVal
18%
Summary
Applying a 16x P/E to adjusted EPS of $4.21, the base-case value is $67.36 per share. DDM cross-check: $76.27.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples