TacticScaleWhat Public Service Enterprise Does & How It Makes Money (PEG)
Updated October 2026 · reflects Public Service Enterprise's latest reported financials
New Jersey electric and gas utility with nuclear power generation. Most of its revenue comes from regulated rates for moving electricity and gas through its wires and pipes, which lets it earn a return on the grid and pipeline assets it invests in.
How Public Service Enterprise makes money
Most of its revenue comes from regulated rates for moving electricity and gas through its wires and pipes, which lets it earn a return on the grid and pipeline assets it invests in. It also sells power produced by its nuclear plants.
What Public Service Enterprise does
Public Service Enterprise Group, founded in 1903 and headquartered in Newark, New Jersey, is a regulated utility with two segments. PSE&G transmits electricity and delivers electricity and natural gas to residential, commercial and industrial customers. It also repairs appliances, invests in solar generation and runs energy-efficiency programs. As of December 31, 2025, its network included about 25,000 circuit miles of electric lines, 871,000 poles, 238 substations, 58 switching stations, 18,000 miles of gas mains and 158 MW of installed solar capacity. PSEG Power runs the company's nuclear generation business and supplies power and natural gas to its nuclear plants. Together, the regulated delivery business and the nuclear fleet make PSEG a large U.S. electric and gas utility with its own nuclear generation.
Products & services
- Electric transmission and distribution
- Natural gas distribution
- Nuclear power generation
- Appliance repair services
- Solar generation projects
- Energy efficiency programs
What is Public Service Enterprise worth?
On an owner-earnings DCF, Public Service Enterprise's most-likely value is about $28 versus a recent price near $72 (61% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$17) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $72 is above even the optimistic Bull case ($35) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 27.2× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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