Stock fact sheet · data as of
PPL Corporation (PPL): fair value, margin of safety and Wheel Score
Utilities · Regulated Electric · United States · Defensive
Is PPL undervalued?
PPL Corporation (PPL) closed at 34.75 on 16 Oct 2026, 66% above the GLS average fair value of 20.88. 8 of the 8 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 8 models disagree widely: Lynch gives 10.26 while 10 Cap gives 33.72. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files PPL under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for PPL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 27.52 | -21% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 30.55 | -12% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 10.26 | -70% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 15.47 | -55% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 33.72 | -3% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 11.48 | -67% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 24.03 | -31% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 14.01 | -60% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -35.12 | -201% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 39.45 | +14% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - PPL passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.6 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 3.5%, ROE 7.9%, ROA 2.6% - with debt at 1.30 times equity and a free-cash-flow yield of 1.0%.
The dividend yield is 3.52% at a payout ratio of 65%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Kentucky Regulated 42%, Pennsylvania Regulated 36%, Rhode Island Regulated 23% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 3.5% |
|---|---|---|---|
| GLS Moat | 3.6 / 10 | ROE | 7.9% |
| Debt / equity | 1.30 | ROA | 2.6% |
| Free-cash-flow yield | 1.0% | Payout ratio | 65% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 49: Weak
PPL scores 49 out of 100 on the Wheel Score, in the Weak band (under 50). Value 0/25, Health 13/20, Moat 5/15, Premium 11/20, Stability 20/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 26% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (11 of 20 points). Chain open interest is 44,411 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 5.2M shares a day on a market cap of $26.2B, with a beta of 0.58 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -66% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 5 / 15 | moat 3.6/10 | |
| Premium | 11 / 20 | implied volatility 26% | |
| Stability | 20 / 20 | 5.2M shares/day, $26.2B cap, beta 0.58 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (before the open), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Electric
The 12 companies below are the closest to PPL Corporation by market cap within the Regulated Electric industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CNP CenterPoint Energy, Inc. | 39.80 | 20.41 | -95% | 53Fair | $26.2B |
| FE FirstEnergy Corp. | 45.55 | 43.59 | -5% | 56Fair | $26.4B |
| DTW DTE Energy Company 5.25 % Debentures 2017-01.12.77 Global | 18.35 | 33.95 | +46% | 39No options | $26.6B |
| DTE DTE Energy Company | 128.33 | 77.78 | -65% | 46Weak | $26.7B |
| ES Eversource Energy | 65.99 | 47.69 | -38% | 48Weak | $24.9B |
| FTS Fortis Inc. | 54.66 | 29.87 | -83% | 54Fair | $27.9B |
| NSARO NSTAR Electric Company | 75.90 | 16,344.50 | +100% | 39No options | $28.0B |
| NSARP NSTAR Electric Company PFD 4.25% | 66.00 | 16,335.99 | +100% | 39No options | $28.0B |
| AEE Ameren Corporation | 103.76 | 62.45 | -66% | 54Fair | $28.7B |
| UEPCO Union Electric Company | 86.25 | 65.33 | -32% | 33No options | $29.6B |
| EIX Edison International | 55.65 | 228.48 | +76% | 87Prime | $21.4B |
| CMSA CMS Energy Corporation 5.6% JRSUB NT 78 | 19.02 | 30.99 | +39% | 39No options | $21.0B |
Screen the whole market the same way
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Start free See the Sunday ScanQuestions about PPL
Is PPL undervalued right now?
No: at 34.75 the stock trades 66% above the GLS average fair value of 20.88 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of PPL and what does it mean?
PPL scores 49 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PPL?
20.88 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does PPL Corporation report earnings next?
The next earnings report is due on 4 Nov 2026 (before the open), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does PPL have listed options, and how liquid are they?
Yes. The nightly snapshot found 284 listed contracts with 44,411 open interest across all expiries and implied volatility of 26% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.