Upside case
Bull case
$124+55.8%
PEG would need investors to value it at roughly 28x earnings — about 10x more generous than today's 18x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Public Service Enterprise Group Incorporated (PEG) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
33
analysts
16 bullish · 1 bearish · 33 covering PEG
Strong Buy
0
Buy
16
Hold
16
Sell
1
Strong Sell
0
Consensus Target
$89
+11.9% vs today
Scenario Range
$60 – $124
Model bear to bull value window
Coverage
33
Published analyst ratings
Valuation Context
18.2x
Forward P/E · Market cap $39.8B
PEG price targets
Three scenarios for where PEG stock could go
Current
~$80
Confidence
51 / 100
Updated
Jun 18, 2026
Where we are now
Current · $80
Bear
$60
Base
$94
Bull
$124
Market caseClosest to today
Base case
$94+18.2%
At 22x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$60-25.5%
If investor confidence fades or macro conditions deteriorate, a 5x multiple contraction could push PEG down roughly 26% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Public Service Enterprise Group Incorporated
PEG · NYSEUtilitiesRegulated ElectricDecember year-end
Public Service Enterprise Group is a regulated utility holding company operating primarily in the Northeastern and Mid-Atlantic United States. It generates revenue through its two main segments: PSE&G (regulated electric and gas distribution, ~70% of earnings) and PSEG Power (competitive power generation and wholesale energy marketing, ~30%). The company's primary moat comes from its regulated utility operations which provide stable, predictable returns through government-approved rate structures.
Market Cap
$39.8B
Revenue TTM
$12.8B
Net Income TTM
$2.3B
Net Margin
17.7%
PEG Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
92%Exceptional
vs consensus estimates
Avg EPS Surprise
+5.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.77/$0.70
Revenue
$2.8B/$2.4B
Q4 2025
EPS
$1.13/$1.02
Revenue
$3.2B/$2.7B
Q1 2026
EPS
$0.72/$0.71
Revenue
$2.9B/$2.7B
Q2 2026
EPS
$1.55/$1.44
Revenue
$3.8B/$3.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.77/$0.70 | +10.3% | $2.8B/$2.4B | +17.9% |
| Q4 2025 | $1.13/$1.02 | +10.8% | $3.2B/$2.7B | +18.6% |
| Q1 2026 | $0.72/$0.71 | +1.3% | $2.9B/$2.7B | +8.7% |
| Q2 2026 | $1.55/$1.44 | +7.6% | $3.8B/$3.4B | +14.7% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$13.5B
+5.1% YoY
FY2
$14.0B
+3.7% YoY
EPS Outlook
FY1
$4.69
+3.7% YoY
FY2
$4.99
+6.3% YoY
Trailing FCF (TTM)-$64M
FCF Margin: -0.5%
Next Earnings
August 4, 2026
Expected EPS
$0.81
Expected Revenue
$2.7B
PEG beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
PEG Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $10.6B
Product Mix
Latest annual revenue by segment or product family
Public Service Electric and Gas Company
45.9%
+22.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Public Service Electric and Gas Company is the largest disclosed segment at 45.9% of FY 2025 revenue, up 22.2% YoY.
PEG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly cheap versus peers
Fair value est. $86 — implies +7.9% from today's price.
Upside to Fair Value
7.9%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PEG
19.0x
vs
S&P 500
24.4x
22% discount
vs Utilities Trailing P/E
PEG
19.0x
vs
Utilities
19.0x
In line with benchmark
vs PEG 5Y Avg P/E
Today
19.0x
vs
5Y Average
21.2x
10% discount
Forward PE
18.2x
S&P 500
18.8x
-3%
Utilities
17.4x
+5%
5Y Avg
—
—
Trailing PE
19.0x
S&P 500
24.4x
-22%
Utilities
19.0x
-0%
5Y Avg
21.2x
-10%
PEG Ratio
8.30x
S&P 500
1.66x
+400%
Utilities
1.82x
+356%
5Y Avg
—
—
EV/EBITDA
15.1x
S&P 500
15.2x
-1%
Utilities
11.9x
+27%
5Y Avg
31.5x
-52%
Price/FCF
122.6x
S&P 500
20.7x
+492%
Utilities
18.6x
+558%
5Y Avg
93.7x
+31%
Price/Sales
3.3x
S&P 500
3.1x
+6%
Utilities
2.3x
+41%
5Y Avg
3.3x
-2%
Dividend Yield
3.14%
S&P 500
1.91%
+64%
Utilities
3.10%
+1%
5Y Avg
3.25%
-3%
| Metric | PEG | S&P 500 | Utilities | 5Y Avg PEG |
|---|---|---|---|---|
| Forward PE | 18.2x | 18.8x | 17.4x | — |
| Trailing PE | 19.0x | 24.4x-22% | 19.0x | 21.2x-10% |
| PEG Ratio | 8.30x | 1.66x+400% | 1.82x+356% | — |
| EV/EBITDA | 15.1x | 15.2x | 11.9x+27% | 31.5x-52% |
| Price/FCF | 122.6x | 20.7x+492% | 18.6x+558% | 93.7x+31% |
| Price/Sales | 3.3x | 3.1x | 2.3x+41% | 3.3x |
| Dividend Yield | 3.14% | 1.91% | 3.10% | 3.25% |
PEG trades above S&P 500 benchmarks on 2 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPEG Financial Health
Verdict
Exceptional
PEG earns 25.5% operating margin on regulated earnings, 3.1% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$12.8B
Revenue Growth
TTM vs prior year
+19.0%
Operating Margin
Operating income divided by revenue
25.5%
Net Margin
Net income divided by revenue
17.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$4.53
Operating Margin
Operating income over revenue — primary regulated earnings signal
25.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
5.6%
ROA
Return on assets, trailing twelve months
4.0%
Cash & Equivalents
Liquid assets on the balance sheet
$135M
Net Debt
Total debt minus cash
$24.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
—
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
13.3%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
3.1%
Dividend
3.1%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$2.51
Payout Ratio
Share of earnings distributed as dividends
59.6%
Shares Outstanding
Current diluted share count
499M
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pagePEG Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
High Debt Levels
PEG’s debt‑to‑equity ratio is high, exposing the company to refinancing risk and potential liquidity constraints. Even with an attractive PEG, elevated leverage can erode earnings and limit capital allocation flexibility.
High Risk
Overvaluation Concerns
Zacks rates PEG a “Hold” and assigns a “D” Value Score, indicating that current valuation metrics suggest the stock may be overvalued relative to peers. This could pressure the share price if market sentiment turns negative.
High Risk
Underperforming Growth Prospects
PEG’s growth score is an “F,” implying that its earnings growth is likely to lag the broader market. Investors may face lower returns if the company fails to meet growth expectations.
Medium
Unreliable Growth Estimates
PEG relies on projected earnings growth, which can be volatile and hard to forecast accurately. Shifts in market conditions or industry trends can quickly render growth assumptions obsolete, distorting the PEG ratio.
Medium
Cyclical Industry Earnings Volatility
PEG operates in a cyclical sector such as utilities or basic materials, where earnings can swing sharply with economic cycles. This unpredictability undermines the reliability of growth estimates used in the PEG calculation.
Lower
Oversimplification of PEG Metric
The PEG ratio ignores key factors like return on equity, quality of earnings, and macroeconomic trends. Relying solely on PEG can lead to incomplete valuation assessments and missed risks.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why PEG Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Financial Performance
PEG reported strong quarterly revenue that exceeded analyst expectations. Year-over-year results have shown significant increases driven by growth in its utility segment and power & other divisions.
Expanding Demand & Backlog
The company has seen a notable expansion in its backlog of large load inquiries, indicating strong demand for its energy services.
Infrastructure & Clean Energy Investment
PEG benefits from predictable regulated returns and a pipeline of utility infrastructure projects. Upgrades to transmission and distribution networks are improving efficiency, and investments in clean energy initiatives support long-term earnings stability.
Dividend Growth
The company has increased its quarterly dividend, which supports the near‑term investment narrative.
Supportive Regulatory Environment
A favorable regulatory environment, particularly in New Jersey, supports the company's earnings mix and investment plans.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
PEG Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$79.89
52W Range Position
25%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$76.05
+5.0% from the low
52-Week High
$91.26
-12.5% from the high
1 Month
+3.97%
3 Month
-5.13%
YTD
-1.4%
1 Year
-2.7%
3Y CAGR
+8.8%
5Y CAGR
+6.1%
10Y CAGR
+6.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
PEG vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
18.2x
vs 17.0x median
+7% above peer median
Revenue Growth
+5.1%
vs +5.3% median
-3% below peer median
Net Margin
17.7%
vs 12.5% median
+41% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PEG PEG Public Service Enterprise Group Incorporated | $39.8B | 18.2x | +5.1% | 17.7% | Buy | +11.9% |
ED ED Consolidated Edison, Inc. | $39.2B | 17.4x | +4.6% | 12.5% | Hold | +0.9% |
EIX EIX Edison International | $27.7B | 11.7x | +3.7% | 18.9% | Buy | +3.2% |
PPL PPL PPL Corporation | $26.6B | 18.1x | +5.4% | 13.1% | Buy | +16.6% |
FE FE FirstEnergy Corp. | $26.9B | 17.0x | +6.6% | 6.9% | Hold | +12.2% |
ES ES Eversource Energy | $26.2B | 14.9x | +5.3% | 12.5% | Hold | +9.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
PEG Dividend and Capital Return
PEG returns 3.1% total yield, led by a 3.14% dividend, raised 14 consecutive years.
Dividend SustainableFCF Unknown
Total Shareholder Yield
3.1%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
3.14%
Payout Ratio
59.6%
How PEG Splits Its Return
Div 3.14%
Dividend 3.14%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.51
Growth Streak
Consecutive years of dividend increases
14Y
3Y Div CAGR
5.3%
5Y Div CAGR
5.2%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
499M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.34 | — | — | — |
| 2025 | $2.52 | +5.0% | 0.0% | 3.1% |
| 2024 | $2.40 | +5.3% | 0.0% | 2.8% |
| 2023 | $2.28 | +5.6% | 0.0% | 3.7% |
| 2022 | $2.16 | +5.9% | 1.6% | 5.1% |
FAQ
7 questionsPEG Investor Questions
Common questions answered from live analyst data and company financials.
01Is Public Service Enterprise Group Incorporated (PEG) stock a buy or sell in 2026?
Public Service Enterprise Group Incorporated (PEG) is rated Buy by Wall Street analysts as of 2026. Of 33 analysts covering the stock, 16 rate it Buy or Strong Buy, 16 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $89, implying +11.9% from the current price of $80. The bear case scenario is $60 and the bull case is $124.
02What is the PEG stock price target for 2026?
The Wall Street consensus price target for PEG is $89 based on 33 analyst estimates. The high-end target is $94 (+17.7% from today), and the low-end target is $81 (+1.4%). The base case model target is $94.
03Is Public Service Enterprise Group Incorporated (PEG) stock overvalued in 2026?
PEG trades at 18.2x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals slightly cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Public Service Enterprise Group Incorporated (PEG) stock in 2026?
The primary risks for PEG in 2026 are: (1) High Debt Levels — PEG’s debt‑to‑equity ratio is high, exposing the company to refinancing risk and potential liquidity constraints. (2) Overvaluation Concerns — Zacks rates PEG a “Hold” and assigns a “D” Value Score, indicating that current valuation metrics suggest the stock may be overvalued relative to peers. (3) Underperforming Growth Prospects — PEG’s growth score is an “F,” implying that its earnings growth is likely to lag the broader market. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Public Service Enterprise Group Incorporated's revenue and earnings forecast?
Analyst consensus estimates PEG will report consensus revenue of $13.5B (+5.1% year-over-year) and EPS of $4.69 (+3.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $14.0B in revenue.
06When does Public Service Enterprise Group Incorporated (PEG) report its next earnings?
Public Service Enterprise Group Incorporated is expected to report its next earnings on approximately 2026-08-04. Consensus expects EPS of $0.81 and revenue of $2.7B. Over recent quarters, PEG has beaten EPS estimates 75% of the time.
07How much free cash flow does Public Service Enterprise Group Incorporated generate?
Public Service Enterprise Group Incorporated (PEG) had a free cash outflow of $64M in free cash flow over the trailing twelve months — a free cash flow margin of 0.5%. PEG returns capital to shareholders through dividends (3.1% yield) and share repurchases ($0 TTM).