Public Service Enterprise Group Incorporated (PEG) Company Bio
Public Service Enterprise Group operates nuclear, coal, gas, oil-fired, and renewable generation facilities. The company was founded in 1985 and is based in Newark, New Jersey.
PEG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Public Service Enterprise Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Public Service Enterprise Group Inc ranked in the 7th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 94%. The most interesting components of our discounted cash flow analysis for Public Service Enterprise Group Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.43 years, is -0.06% -- higher than just 17.54% of stocks in our DCF forecasting set.
Public Service Enterprise Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 6.73% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 15.48% of stocks in its sector (Utilities).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ENIA, NWE, HNP, AQN, and EVRG can be thought of as valuation peers to PEG, in the sense that they are in the Utilities sector and have a similar price forecast based on DCF valuation.
Public Service Enterprise Group ([[PEG]] +2.6%) climbs to five-month highs after KeyBanc upgrades shares to Overweight from Sector Weight with a $64 price target, cited the company's plan to divest its non-nuclear power generation assets.KeyBanc's Sophie Karp says despite the mixed market reaction, PSEG's divestment decision will prove correct over...
New Jersey utility Public Service Enterprise Group (PSEG), facing state clean energy mandates and an economic imperative to shift its business to regulated assets, is seeking to exit its merchant fossil and solar generation business, while retaining its nuclear power plants and exploring a major expansion into offshore wind. PSEG announced Friday that it’s “exploring strategic alternatives” to its more than 6,750 megawatts of fossil generation in New Jersey, Connecticut, New York and Maryland, and its 467-megawatt Solar Source portfolio spread across 14 states. It expects the transactions involved to begin in the fourth quarter of 2020 and to be completed some time in 2021, CEO Ralph Izzo said in a Friday second-quarter earnings conference call. The sale is expected to “accelerate the t...
Public Service Enterprise Group (NYSE: PEG) reported Net Income for the second quarter of 2020 of $451 million, or $0.89 per share, compared to Net Income of $153 million, or $0.30 per share, in the second quarter of 2019. Non-GAAP Operating Earnings for the second quarter of 2020 were $404 million, or $0.79 per share, […]