Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker

Industry

Sector

Public Service Enterprise Group Incorporated (PEG)

Company Dividend Discount ModelIndustry: Regulated ElectricSector: Utilities

Valuation Snapshot

Stable Growth$37.56 - $57.43$46.85
Multi-Stage$69.72 - $76.53$73.06
Blended Fair Value$59.95
Current Price$83.46
Upside-28.16%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.71%4.81%2.392.272.162.061.981.901.821.741.661.58
YoY Growth--5.19%5.38%4.66%4.04%4.32%4.40%4.60%4.82%5.20%5.48%
Dividend Yield--2.90%3.41%3.45%2.94%3.29%4.23%3.11%3.46%3.74%3.35%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,082.00
(-) Cash Dividends Paid (M)1,242.00
(=) Cash Retained (M)840.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)416.40260.25156.15
Cash Retained (M)840.00840.00840.00
(-) Cash Required (M)-416.40-260.25-156.15
(=) Excess Retained (M)423.60579.75683.85
(/) Shares Outstanding (M)500.25500.25500.25
(=) Excess Retained per Share0.851.161.37
LTM Dividend per Share2.482.482.48
(+) Excess Retained per Share0.851.161.37
(=) Adjusted Dividend3.333.643.85
WACC / Discount Rate7.53%7.53%7.53%
Growth Rate-1.22%-0.22%0.78%
Fair Value$37.56$46.85$57.43
Upside / Downside-54.99%-43.86%-31.19%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,082.002,077.322,072.662,068.002,063.352,058.722,120.48
Payout Ratio59.65%65.72%71.79%77.86%83.93%90.00%92.50%
Projected Dividends (M)1,242.001,365.291,488.011,610.181,731.791,852.841,961.44

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.53%7.53%7.53%
Growth Rate-1.22%-0.22%0.78%
Year 1 PV (M)1,256.941,269.671,282.39
Year 2 PV (M)1,261.221,286.891,312.81
Year 3 PV (M)1,256.471,295.011,334.34
Year 4 PV (M)1,244.121,295.281,347.99
Year 5 PV (M)1,225.461,288.761,354.65
PV of Terminal Value (M)28,632.2330,111.2431,650.74
Equity Value (M)34,876.4536,546.8538,282.94
Shares Outstanding (M)500.25500.25500.25
Fair Value$69.72$73.06$76.53
Upside / Downside-16.47%-12.46%-8.31%

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