A Look at Public Service Enterprise Group’s Valuation After Strong Q3 Results and Customer Satisfaction Wins

Public Service Enterprise Group (PEG) posted higher sales and net income for the third quarter compared to last year, which has drawn attention from investors. The company also earned fresh recognition for customer satisfaction, adding to the upbeat momentum.

See our latest analysis for Public Service Enterprise Group.

This stretch of upbeat news comes on the heels of a solid multi-year run for Public Service Enterprise Group, even though recent share price moves have been a bit subdued. Despite a 1-year total shareholder return of -4.0%, PEG’s robust three- and five-year total returns, at 59% and 68% respectively, highlight its long-term momentum and ability to reward patient investors. The market’s recent signals suggest optimism is holding, especially as the company wins recognition for steady execution and regulatory savvy.

If you’re weighing where stable returns and momentum could take you next, it’s worth broadening your search and discovering fast growing stocks with high insider ownership

With upbeat earnings, positive analyst commentary, and customer satisfaction accolades all stacking up, investors may wonder whether there is still a bargain to be found or if the company's future growth is already fully reflected in the stock price.

Most Popular Narrative: 8.6% Undervalued

Public Service Enterprise Group’s fair value, according to the consensus narrative, is estimated at $90.61, about 8.6% above the latest close. The narrative builds on long-term growth prospects and high capital investment, with big assumptions about future earnings that drive the higher target.

Sustained and increasing levels of utility capital investment ($3.8B in 2025; $21 to $24B through 2029) focused on grid modernization, infrastructure resilience, and clean energy programs position PSEG to capture value from regulatory-approved rate increases and expand its regulated asset base, driving future earnings and net margin growth.

Read the complete narrative.

Want to understand what’s powering this valuation? The numbers behind this target rest on future revenue growth, margin expansion, and a bold earnings target. Click in to unravel the story; there may be surprises hiding in those forecasts.

Result: Fair Value of $90.61 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, uncertainty remains around whether data center demand will actually convert to new customers, and regulatory hurdles in New Jersey could also impact long-term growth.

Find out about the key risks to this Public Service Enterprise Group narrative.

Another View: A Look Through the Earnings Lens

Stepping away from analyst forecasts, PEG's current price-to-earnings ratio of 19.9x is actually below the peer average of 21.1x and beneath its fair ratio of 21x. Yet, it remains slightly pricier than the broader global industry at 18.1x, reflecting both local optimism and a modest premium risk. This suggests investors see room for stable value but leaves little cushion if expectations falter. Could the real opportunity be in the gaps between these benchmarks?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Public Service Enterprise Group Narrative

If you want to question these forecasts or dig deeper on your own, it only takes a few minutes to explore the numbers and craft your own story. Do it your way

A great starting point for your Public Service Enterprise Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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