Is PPL Corporation (PPL) Undervalued?
Based on the current stock price of $35.08 and a P/E ratio of 23.86,PPL Corporation has a PEG ratio of 3.31.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.31, PPL appears to be potentially overvalued relative to its growth rate of 7.20%.
Based on a PEG ratio of 2.31 (adjusted for dividends).
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How we analyzed PPL
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 23.86and dividing it by the annual growth rate of 7.20%.
PEG = 23.86 (P/E) ÷ 7.20 (Growth) = 3.31
Frequently Asked Questions about PPL
What is the current PEG Ratio for PPL Corporation (PPL)?+
The current PEG Ratio for PPL Corporation is 3.31. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is PPL stock undervalued right now?+
Based on the PEG ratio of 3.31, PPL 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 PPL?+
The PEGY ratio for PPL Corporation is 2.31. This metric accounts for dividend yield (3.11%), providing a more complete valuation picture.