FirstEnergy

Methodology

FirstEnergy's regulated utility operations generate predictable earnings from transmission and distribution rate base investments following its exit from generation. The pure-play T&D model provides earnings stability. Fair value calculations work reliably when accounting for mid-single-digit earnings growth from infrastructure investments and regulatory rate increases.

Methodology

FirstEnergy typically trades at PEG ratios between 1.5-2.5x, reflecting standard utility valuations with modest premium for above-average growth from infrastructure spending. The company's transmission focus and grid modernization support steady earnings expansion. PEG works well for this growth-oriented utility compared to slower-growing generation-heavy peers.

Methodology

FirstEnergy pays a dividend yielding 4-5% that provides meaningful total return alongside earnings growth, making PEGY important for valuation. The regulated T&D model ensures dividend sustainability with growth potential. Total return benefits from both reliable yield and above-average utility earnings growth from transmission and distribution infrastructure investments.