Is CMS Energy Corporation (CMS) Undervalued?
Based on the current stock price of $69.96 and a P/E ratio of 20.16,CMS Energy Corporation has a PEG ratio of 2.71.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.71, CMS appears to be potentially overvalued relative to its growth rate of 7.45%.
Based on a PEG ratio of 1.91 (adjusted for dividends).
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How we analyzed CMS
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 20.16and dividing it by the annual growth rate of 7.45%.
PEG = 20.16 (P/E) ÷ 7.45 (Growth) = 2.71
Frequently Asked Questions about CMS
What is the current PEG Ratio for CMS Energy Corporation (CMS)?+
The current PEG Ratio for CMS Energy Corporation is 2.71. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CMS stock undervalued right now?+
Based on the PEG ratio of 2.71, CMS Energy Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CMS?+
The PEGY ratio for CMS Energy Corporation is 1.91. This metric accounts for dividend yield (3.10%), providing a more complete valuation picture.