Discounted Cash Flow

Public Service Enterprise Group Inc.

PEG · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $9.1b $887.0m $-888.0m 9.8% $1.76
2017 $9.1b (0.3%) $1.6b (77.5%) $-929.0m (-4.6%) 17.3% (77.0%) $3.12 (77.3%)
2018 $9.7b (6.7%) $1.4b (-8.6%) $-999.0m (-7.5%) 14.8% (-14.4%) $2.85 (-8.7%)
2019 $10.1b (3.9%) $1.7b (17.7%) $213.0m (121.3%) 16.8% (13.3%) $3.35 (17.5%)
2020 $9.6b (-4.7%) $1.9b (12.5%) $179.0m (-16.0%) 19.8% (18.1%) $3.78 (12.8%)
2021 $9.7b (1.2%) $-648.0m (-134.0%) $-983.0m (-649.2%) -6.7% (-133.6%) $-1.29 (-134.1%)
2022 $9.8b (0.8%) $1.0b (259.1%) $-1.4b (-40.9%) 10.5% (257.8%) $2.07 (260.5%)
2023 $11.2b (14.7%) $2.6b (148.6%) $481.0m (134.7%) 22.8% (116.8%) $5.15 (148.8%)
2024 $10.3b (-8.4%) $1.8b (-30.9%) $-1.2b (-359.3%) 17.2% (-24.5%) $3.56 (-30.9%)
2025 $12.2b (18.3%) $2.1b (19.1%) $26.0m (102.1%) 17.3% (0.7%) $4.23 (18.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model