What is NRG Energy, Inc. (NRG)'s PEG ratio?

NRG Energy, Inc. (NRG) has a PEG ratio of 2.22 (Potentially Overvalued), based on a PE ratio of 32.1 and expected EPS growth of 14.5% (5-Year EPS CAGR).

Is NRG 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 2.22, NRG Energy, Inc. (NRG) screens as "Potentially Overvalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/NRG.

NRG Energy, Inc. (NRG) PEG Ratio

Potentially Overvalued

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

2.22

PEG Ratio

2.22

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$122.37

TTM EPS

$3.81

P/E Ratio

32.12

Growth Rate

14.5%

5-Year EPS CAGR

Sector

Utilities

Independent Power Producers

Calculated

8/18/2026

9:46:03 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

1.84

25th Percentile

1.48

75th Percentile

2.82

NRG PEG (2.22) vs Industry Median (1.84): 20% premium

Symbol	Company	PEG	P/E	Growth	vs NRG
HUNGF	Huaneng Power International, Inc.	0.07	0.9	12.8%	-97%
HGKGY	Power Assets Holdings Limited	1.48	0.6	0.4%	-33%
VST	Vistra Corp.	2.20	24.6	11.2%	-1%
MXGFF	Maxim Power Corp.	2.82	18.3	6.5%	+27%

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.

NRG Energy, Inc. (NRG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on NRG

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NRG Energy, Inc. (NRG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on NRG

Compare with peers

Explore