Public Service Enterprise Gp
PEGAbove valueExpectations · demandingHeld by 3 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +18.3%
- Net margin
- 17.3%
- ROE
- 12.4%
- FCF margin
- 0.2%
Valuation · value band
Above fair value
Zero-growth floor
$35
Central IV
$28
Optimistic top
$35
Public Service Enterprise Gp (PEG): A conservative value band $35 / sh (zero-growth floor to growth-capped optimistic top); central read about $28. Today’s price sits above that band (price $74 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 4% (lower of historical trend and fundamental cap, capped by moat) · moat 0 yr · discount 14.6% · Zero-growth downside $35
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $21.22 – $31.95 · Greenwald zero-growth $34.73 · zero-growth base $34.73 · reproduction $34.73
Moat Below asset base · terminal value 34% of present value · owner-earnings yield 4% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$-13.76 – $-6.40 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex unavailable → degraded to the v1 simplification (maintenance capex = D&A, so the depreciation add-back nets to zero). Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$20.46 – $23.61 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 13.0–15.0% band (9–11% base + 4.0pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex or D&A unavailable → degraded to normalized net income (= average net income over the years shown). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 4.0pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 15.3 years of owner earnings, adding 4.0pp of cost-of-equity risk premium.
Reproduction value = tangible net assets $17.33B = $34.73 / sh. Total book value (shareholders' equity ÷ diluted shares); intangibles not separated — goodwill/intangibles unavailable this period.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. Dual reproduction test unavailable (intangibles not separated). A directional reading, not a verdict.
Growth value gated to zero — no moat or ROIIC ≤ WACC, so no growth value is credited.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 14% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 15.3 years of owner earnings → +4.0pp cost-of-equity premium → effective 13.0%–15.0%.
Owner-earnings DCF: growth g₁ 4% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 13.16%–16.00% (DGS10 +4.5% to a 12% strict end, each +4.00pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 24.2% a year in owner-earnings for the next few years. Revenue actually grew 4.4% a year.
The market wants it well ahead of its own track record.
SEC 13F · holders
Superinvestors Holding This Security
3 holders · $79.7M combined · this quarter +0 opened / -1 exited
- Value$78.7MWeight (prev→now)2.7% → 2.4% ▼
- Value$726,220Weight (prev→now)0.0% → 0.0% ▼
- Value$285,267Weight (prev→now)0.1% → 0.1%
SEC 13F · notes
Written summary
Written summary
Public Service Enterprise Gp (PEG) is held by 3 of the superinvestors tracked on Compounder, with a combined $79.7M in reported 13F value. The largest position belongs to Harry Burn, where it makes up 2.4% of the portfolio.
Other notable holders by value include Jim Cullen (0.0% of its book) and Thomas Kahn (0.1% of its book).
Over the latest quarter, 0 of the tracked filers opened a new position in PEG, 0 added to existing ones, 1 trimmed, and 1 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Public Service Enterprise Gp (PEG) also commonly hold →
- Citigroup IncC3 holders
- Bank Of America CorpBAC3 holders
- Pfizer IncPFE3 holders
- Chevron CorpCVX3 holders
- Walt Disney Co/TheDIS3 holders
- Csx CorpCSX3 holders
PEG's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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