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Comparing PPL’s, D’s, and EXC’s Valuation with Peers’

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Valuation

PPL’s (PPL) dividend yield is 5.2%, one of the highest among utilities, and its forward PE multiple is 12.7x. Its five-year historical average is 14x, lower than broader utilities’ average valuation of 16x–17x. PPL expects its EPS to grow 5% annually for the next few years, in line with the industry average.

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Dominion Energy

Dominion Energy (D) stock is attractive compared with peers. Its forward PE multiple is 16.6x, and its five-year historical average is 24x. The company’s earnings are expected to rise ~4% this year, in line with many of its peers’.

Exelon

Exelon (EXC) stock’s forward PE multiple is 15x, lower than many of its peers’ (XLU) multiples and its five-year average of ~17x. Exelon’s earnings grew strongly in fiscal 2018, with its EPS growing 18% year-over-year in the first nine months. However, analysts expect its EPS growth to slow.

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