What is CMS Energy Corporation (CMS)'s PEG ratio?

CMS Energy Corporation (CMS) has a PEG ratio of 3.58 (Potentially Overvalued), based on a PE ratio of 21.1 and expected EPS growth of 5.9% (5-Year EPS CAGR).

Is CMS undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 3.58, CMS Energy Corporation (CMS) screens as "Potentially Overvalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/CMS.

CMS Energy Corporation (CMS) PEG Ratio

Potentially Overvalued

PE ratio relative to earnings growth — is the valuation justified?

3.58

PEG Ratio

3.58

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$71.40

TTM EPS

$3.38

P/E Ratio

21.12

Growth Rate

5.9%

5-Year EPS CAGR

Sector

Utilities

Regulated Electric

Calculated

8/18/2026

9:39:04 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

11.73

25th Percentile

4.47

75th Percentile

114.96

CMS PEG (3.58) vs Industry Median (11.73): 69% discount

Symbol	Company	PEG	P/E	Growth	vs CMS
AEE	Ameren Corporation	2.19	19.3	8.8%	-39%
LNT	Alliant Energy Corporation	4.47	22.3	5.0%	+25%
PNW	Pinnacle West Capital Corporation	18.99	19.8	1.0%	+431%
CNP	CenterPoint Energy, Inc.	114.96	23.9	0.2%	+3112%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

CMS Energy Corporation (CMS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on CMS

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CMS Energy Corporation (CMS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on CMS

Compare with peers

Explore