What is Public Service Enterprise Group Incorporated (PEG) DCF Fair Value and Intrinsic Value in 2026?

Public Service Enterprise Group Incorporated (PEG) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Public Service Enterprise Group Incorporated's historical Return on Invested Capital (ROIC) and Moat Rating?

Public Service Enterprise Group Incorporated operates in the Utilities sector (Utilities - Diversified) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Public Service Enterprise Group Incorporated's financial health rating and Piotroski F-Score?

Public Service Enterprise Group Incorporated's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Public Service Enterprise Group Incorporated (PEG) for quarterly SEC filing thesis breaks?

LocalAlpha audits Public Service Enterprise Group Incorporated's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksPEG

PEG

Public Service Enterprise GroupUtilities / Utilities - Regulated ElectricINTACT

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility, and nuclear generation businesses in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs. The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants. As of December 31, 2025, it had electric transmission and distribution system of 25,000 circuit miles and 871,000 poles; 58 switching stations with an installed capacity of 40,000 megavolt-amperes (MVA), and 238 substations with an installed capacity of 10,890 MVA; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and two meter shop, as well as 54 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. The company was founded in 1903 and is based in Newark, New Jersey.

Share Price

$72.44

52W: $72.08 - $87.63

DCF Fair Value

$0.00

0% Premium

Thesis Hub

P/E (TTM)

18x

ROIC

14.2%

Operating Margin

18.9%

FCF Yield

0.3%

Debt / Equity

1.42x

Piotroski Score

5/9

Altman Z-Score

2.27

Market Cap

$36.1B

Price vs. Intrinsic Value Corridor

Fair Value Range

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

Valuation Overlays:0 Revised Graham ($83.65) Graham Number ($56.10)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$72.44

DCF Fair Value

$0.00

-100% Premium

Starting Free Cash Flow ($M)$108M

$100M$108M (Reported)$50,000M

Stage 1 Growth (Years 1-5)9.5%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$24,500M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$1.0B

PV of Terminal Value

$1.4B

Implied Enterprise Value

$2.4B

Implied Equity Value

$-22.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$118	$129	$142	$155	$170	$178	$186	$194	$203	$212
Present Value (PV)	$109	$109	$109	$110	$111	$106	$102	$97	$93	$90

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-29.1% Premium

$56.10

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $4.02BVPS: $34.80

Revised Graham Formula+13.4%

$83.65

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings0.3% Yield

$0.21 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.1BYield: 0.3%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER

44.8% CAGR (Next 10 Yrs)

At the current price of $72.44, the market is assuming the business will compound Free Cash Flow at 44.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

⚠ High expectations: Leaves minimal margin of safety for operational hiccups.

Autonomous Thesis Underwriting

Surveil PEG with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Public Service Enterprise Group. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 18.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Public Service Enterprise Group (PEG) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Public Service Enterprise Group.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Public Service Enterprise Group has an estimated DCF intrinsic fair value of $0.00 per share compared to its current market price of $72.44. This represents an estimated 0.0% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $56.10.