Entergy

Methodology

Entergy's regulated utility operations across the Gulf Coast generate highly predictable earnings from allowed returns on electric infrastructure investments. The vertically-integrated utility provides essential service with stable demand. Fair value calculations work reliably when accounting for low-single-digit earnings growth from rate base expansion and infrastructure modernization.

Methodology

Entergy typically trades at PEG ratios between 1.5-2.5x, reflecting standard utility valuations that balance earnings predictability with limited growth potential. The company's nuclear fleet and transmission investments support steady but unexciting earnings growth. PEG works reasonably well though utilities trade primarily on dividend yields rather than growth metrics.

Methodology

Entergy pays a substantial dividend yielding 3-4% that drives total return for this defensive utility stock, making PEGY far more relevant than PEG. The regulated business model ensures dividend sustainability and modest growth over time. Total return for vertically-integrated utilities centers heavily on reliable yield generation captured better by PEGY than PEG.