PPL (PPL) stock is trading at a PE multiple of 13x—compared to its five-year historical valuation of 14x. Recently, PPL traded at an enterprise value-to-EBITDA multiple of 9.7x. The company’s five-year historical average is 11x. PPL stock appears to be trading at a discounted valuation compared to its historical multiples.
Xcel Energy (XEL) is trading at a PE multiple of 22x—compared to its historical average of 18x. The company is trading at a premium valuation to its historical average. Xcel Energy’s enterprise value-to-EBITDA multiple is 10.6x.
Duke Energy (DUK), is trading at a PE ratio of 21.0x. Duke Energy stock is trading at an enterprise value-to-EBITDA valuation multiple of 11.0x.
Currently, PPL stock is trading at a dividend yield of 5.7%, which is higher than utilities’ (XLU) average yield of 3.4%. PPL is trading at a yield more than double NextEra Energy’s (NEE) yield. NextEra Energy is the biggest utility by market capitalization. Duke Energy and Xcel Energy are offering yields of 4.6% and 3.2%, respectively.
PPL’s dividend increase in the first quarter from $0.40 to $0.41 per share was the 16th annual increase in its dividends in the last 17 years. PPL’s payout ratio was 75% in the last 12 months, which was higher than its five-year average payout ratio of 65%.
NextEra Energy, Duke Energy, Southern Company (SO), and Dominion Energy (D) are the top four utilities by market capitalization. To compare their dividend profiles, read Analyzing the Biggest S&P 500 Utilities’ Dividend Profiles.