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PG&E (PCG): Reassessing Valuation After a Recent Share Price Rebound

Simply Wall St · 2d ago

PG&E (PCG) has quietly outperformed the broader utilities space over the past week, with the stock up about 6%, even as its year to date return still sits sharply negative.

See our latest analysis for PG&E.

That recent pop in the share price, now around $15.68, has only partly clawed back a weak year to date share price return. The one year total shareholder return also remains negative, so momentum still looks more like a tentative rebound than a full trend shift.

If PG&E has you rethinking your defensive holdings, it could be worth exploring fast growing stocks with high insider ownership as a way to spot more dynamic opportunities with skin in the game.

With earnings inching higher but the share price still lagging analyst targets and long term returns, PG&E may appear to offer mispriced value. Investors must also consider the possibility that the market is already factoring in all of its future growth potential.

Most Popular Narrative: 26.2% Undervalued

With PG&E last closing at $15.68 versus a narrative fair value in the low $20s, the current setup implies meaningful upside if the story plays out.

Expanding opportunities for capital investment in grid modernization, wildfire mitigation, and resilience fueled by both regulatory mandates and the need to serve new electrification and decarbonization requirements position PG&E to grow its rate base and regulated earnings steadily over the next decade.

Read the complete narrative.

Curious how steady, regulated earnings growth can still justify a double digit upside from here? The narrative leans on long duration grid spending, richer margins, and a future earnings multiple that looks more like a growth story than a sleepy utility. Want to see exactly how those pieces add up to that fair value call?

Result: Fair Value of $21.23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent wildfire liability uncertainty and mounting affordability pressures in California could constrain returns and derail the bullish grid investment narrative.

Find out about the key risks to this PG&E narrative.

Another Way to Look at Value

Not everyone leans on narratives to judge value. On plain price to earnings, PG&E trades at about 13.3 times versus roughly 19.5 times for the US electric utilities sector and a fair ratio of 27 times, pointing to a wide valuation gap that could either slowly close or stay open for years.

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:PCG PE Ratio as at Dec 2025
NYSE:PCG PE Ratio as at Dec 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out PG&E for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 908 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own PG&E Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom take in just minutes: Do it your way.

A great starting point for your PG&E research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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PG&E is just one opportunity, and I do not want you missing powerful setups when Simply Wall Street’s Screener can surface targeted ideas in seconds.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.