Eversource Energy

Methodology

Eversource Energy's regulated utility operations in New England generate highly predictable earnings from allowed returns on electric, gas, and water investments. The diversified utility provides essential services with stable demand patterns. Fair value calculations work reliably when accounting for low-single-digit earnings growth from infrastructure replacement and rate base expansion.

Methodology

Eversource typically trades at PEG ratios between 1.5-2.5x, reflecting standard utility valuations emphasizing predictability over growth potential. The company's renewable energy investments and grid modernization support steady earnings. PEG works reasonably well though utilities trade primarily on dividend yields rather than growth multiples.

Methodology

Eversource pays a substantial dividend yielding 4-5% that drives total return for this defensive utility stock, making PEGY far more relevant than PEG. The regulated business model ensures dividend sustainability with modest inflation-linked growth. Total return for regulated utilities centers heavily on reliable yield generation with PEGY capturing the income value proposition.