Evergy

Methodology

Evergy's regulated electric utility operations in Kansas and Missouri generate highly predictable earnings from allowed returns on rate base investments. The utility provides essential service with stable demand and straightforward regulatory frameworks. Fair value calculations work reliably when accounting for low-single-digit earnings growth from infrastructure investments and rate base expansion.

Methodology

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

Methodology

Evergy pays a substantial dividend yielding 4-5% that drives total return for this defensive utility stock, making PEGY critical for valuation. The regulated business model ensures long-term dividend sustainability with inflation-linked growth. Total return for regulated utilities relies heavily on yield component, with PEGY providing more complete picture than growth-focused PEG metrics.