Using the PEG framework with analyst consensus forward EPS growth of 12.6% plus 0.9% dividend yield, Aon plc has a fair value of $241.52 based on NTM EPS (FY2026) of $19.11. The current PEG ratio is 1.34.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.7% |
| Dividend Yield | +0.9% |
| Adjusted Growth (clamped 8–25%) | 12.6% |
| Fair P/E | 12.6x |
| NTM EPS (FY2026) | $19.11 |
| Fair Value | $241.52 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $17.02 | — | — |
| FY2026E | $19.11 | +12.3% | 14 |
| FY2027E | $21.50 | +12.5% | 14 |
| FY2028E | $23.74 | +10.4% | 7 |
3Y Forward EPS CAGR: 11.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.3B | $5.55 | — |
| FY2022 | $2.6B | $12.14 | +118.7% |
| FY2023 | $2.6B | $12.51 | +3.0% |
| FY2024 | $2.7B | $12.49 | -0.2% |
| FY2025 | $3.7B | $17.02 | +36.3% |
4Y Historical EPS CAGR: 32.3%
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.