Assessing Public Service Enterprise Group (PEG) Valuation After Recent Share Price Stabilization

Public Service Enterprise Group (PEG) shares have seen a slight uptick today, rising 0.6%. Despite recent declines over the past month, the stock’s long-term returns show steady gains over three and five years.

See our latest analysis for Public Service Enterprise Group.

PEG’s share price has drifted lower over the year, reflecting changing sentiment as utilities faced a tougher market. However, its long-term total shareholder returns remain robust, with three- and five-year gains continuing to stand out compared to recent sluggishness.

If PEG’s recent stability has you curious, this could be a good opportunity to broaden your outlook and discover fast growing stocks with high insider ownership

Given PEG’s recent pullback but impressive multi-year gains, investors are left to wonder whether the share price is now undervalued or if markets are already factoring in the company’s future prospects, leaving little room for upside.

Most Popular Narrative: 10.9% Undervalued

With the narrative fair value estimate at $90.61, which is above the last close of $80.75, attention is now squarely on whether fresh catalysts could shift investor sentiment and drive further upside from today’s levels.

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 the bold thesis behind this target? The fair value hinges on assumptions about future growth, margin expansion, and a premium profit multiple. Curious which projections make this number possible? See how this narrative unpacks PEG’s path to long-term value.

Result: Fair Value of $90.61 (UNDERVALUED)

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

However, PSEG’s outlook faces hurdles, especially if data center demand falls short of expectations or if regulatory setbacks delay planned grid investments.

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

Another View: Checking with Market Multiples

While the narrative approach finds PEG undervalued, examining its price-to-earnings ratio offers a different lens. PEG trades at 20.4 times earnings, just below its peers at 20.7x, but higher than the global industry average of 18.2x and close to its fair ratio of 20.9x. This suggests current pricing offers less margin for error compared to the story-based valuation. Is the market giving PEG the benefit of the doubt, or could expectations be running a little hot?

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Public Service Enterprise Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 834 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Public Service Enterprise Group Narrative

If you see things differently or would rather rely on your own analysis, you can put together your own narrative in just a few minutes. Do it your way

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

Looking for More Smart Investment Ideas?

Don’t limit your opportunities to just one stock. Take advantage of the full picture. Expand your research to tap into hidden value, market shifts, and disruptive trends before others catch on.

• Unlock potential by targeting real value with these 834 undervalued stocks based on cash flows, featuring businesses that the market may be overlooking. This can provide you with a possible edge before prices catch up.
• Catch the next data-driven wave by reviewing these 26 AI penny stocks, where breakthrough artificial intelligence companies could transform entire industries and enhance your long-term return prospects.
• Boost your portfolio’s cash flow with these 24 dividend stocks with yields > 3%, highlighting companies paying strong yields above 3% and prioritizing stable income along with growth.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com