Using the PEG framework with analyst consensus forward EPS growth of 22.9% plus 2.4% dividend yield, American International Group, Inc. has a fair value of $180.38 based on NTM EPS (FY2026) of $7.86. The current PEG ratio is 0.41.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 20.5% |
| Dividend Yield | +2.4% |
| Adjusted Growth (clamped 8–25%) | 22.9% |
| Fair P/E | 22.9x |
| NTM EPS (FY2026) | $7.86 |
| Fair Value | $180.38 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.43 | — | — |
| FY2026E | $7.86 | +44.8% | 6 |
| FY2027E | $8.86 | +12.6% | 6 |
| FY2028E | $9.51 | +7.3% | 3 |
3Y Forward EPS CAGR: 20.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $10.4B | $11.95 | — |
| FY2022 | $10.2B | $12.94 | +8.3% |
| FY2023 | $3.6B | $4.98 | -61.5% |
| FY2024 | $-1.4B | $3.35 | -32.7% |
| FY2025 | $3.1B | $5.43 | +62.1% |
4Y Historical EPS CAGR: -17.9%
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.