Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$50.98
Based on 6.3% avg growth
INTRINSIC VALUE TODAY
$31.65
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.8x Exit PE.
Valuation Analysis: PPL is currently trading at $35.78, which is considered fair relative to its 30-day fair value range of $35.23 to $36.54. The stock's valuation (Forward PE: 16.9) is in line with its historical norms (17.8). Remarkably, the market is currently pricing in an annual earnings decline of 1.8% over the next few years. This pessimistic expectation contrasts with the company's recent 7.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, PPL is in a strong uptrend. The price is approaching resistance at $36.22. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $41.33 (+15.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$35.23 -
$36.54
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
70.0%
All Signals
NEUTRAL: Price in fair range
NEUTRAL: Mixed technical signals (40/100)
BULLISH: High volume confirmation
BULLISH: Trading below Wall St target ($41.33)
Trading Range Analysis
30-Day Trading Range
$35.23 -
$36.54
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level$34.49
Resistance Level$36.22
Current TrendStrong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)16.91
Wall Street Target
$41.33
(+15.5%)
Revenue Growth (YoY)10.8%
Earnings Growth (YoY)7.3%
Profit Margin13.1%
Valuation Discount vs History
-1.8% cheaper
PE vs Historical
16.9 vs 17.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):-1.8%
(market-implied from PE analysis)
1-Year Target
$35.14
(-2%)
2-Year Target
$34.50
(-4%)
3-Year Target
$33.88
(-5%)
3-Yr Target (if PE normalizes)
(PE: 17→18)
$35.67
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 8.5%)
$58.87
(+65%)
Base:
(SPY PE: 16.9, Growth: 8.5%)
$45.69
(+28%)
Bear:
(PE: 14.4, Growth: 8.5%)
$38.84
(+9%)
📈Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (22x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 21.88 | Current EPS (TTM): $1.63
Bull Case
$50.93
(+42%)
Analyst growth 29.8%, PE expands to 24.1
Base Case
$46.30
(+29%)
Market implied 29.8%, PE stable at 21.9
Bear Case
$24.25
(-32%)
Severe decline -20.0%, PE contracts to 18.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 16.9 to 17.8
Stabilization Target:
$37.67
(+5.3%)
PE Expansion Potential:
+5.3%
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PPL is a holding company of regulated utilities in Pennsylvania, Kentucky, and Rhode Island. The Pennsylvania regulated delivery and transmission segment distributes electricity to customers in central and eastern Pennsylvania. In Kentucky, LG&E and KU are involved in regulated electricity generation, transmission, and distribution. LG&E also provides regulated natural gas distribution. Rhode Island Energy operates electric and gas utilities in the state.