PEG
Public Service Enterprise Group Incorporated
$79.88
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 8.4% above fair value
You pay
$79.88
Bear
$64.46
Fair
$73.67
Bull
$82.87
Bear
$64.46
-19.3%
$4.21 × 14x P/E
Fair
$73.67
-7.8%
$4.21 × 16x P/E
Bull
$82.87
+3.7%
$4.21 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
19.0x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $88.38 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $73.67 per share.
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