Exelon

Methodology

Exelon's regulated utility operations across multiple mid-Atlantic states generate highly predictable earnings from transmission and distribution rate base investments. The pure-play utility model provides earnings stability following the Constellation generation spinoff. Fair value calculations work reliably when accounting for mid-single-digit earnings growth from infrastructure investments and regulatory rate increases.

Methodology

Exelon typically trades at PEG ratios between 1.5-2.5x, reflecting solid utility valuations emphasizing predictable cash flows and above-average growth from infrastructure spending. The company's transmission investments and grid modernization support steady earnings expansion. PEG works well for this growth-oriented utility compared to slower-growing peers.

Methodology

Exelon pays a dividend yielding 3-4% that provides meaningful total return alongside earnings growth, making PEGY relevant for valuation. The regulated T&D model ensures dividend sustainability with growth potential. Total return benefits from both yield and above-average utility earnings growth, with PEGY capturing the balanced growth and income profile.