Using the PEG framework with analyst consensus forward EPS growth of 8.3% plus 2.1% dividend yield, Aflac Incorporated has a fair value of $60.88 based on NTM EPS (FY2026) of $7.35. The current PEG ratio is 1.77.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.1% |
| Dividend Yield | +2.1% |
| Adjusted Growth (clamped 8–25%) | 8.3% |
| Fair P/E | 8.3x |
| NTM EPS (FY2026) | $7.35 |
| Fair Value | $60.88 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.83 | — | — |
| FY2026E | $7.35 | +7.7% | 4 |
| FY2027E | $7.77 | +5.6% | 4 |
| FY2028E | $8.16 | +5.1% | 3 |
3Y Forward EPS CAGR: 6.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $4.2B | $6.39 | — |
| FY2022 | $4.4B | $6.93 | +8.5% |
| FY2023 | $4.7B | $7.78 | +12.3% |
| FY2024 | $5.4B | $9.63 | +23.8% |
| FY2025 | $3.6B | $6.83 | -29.1% |
4Y Historical EPS CAGR: 1.7%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.