Using the PEG framework with analyst consensus forward EPS growth of 15.2% plus 2.2% dividend yield, Avery Dennison Corporation has a fair value of $154.83 based on NTM EPS (FY2026) of $10.19. The current PEG ratio is 1.09.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.0% |
| Dividend Yield | +2.2% |
| Adjusted Growth (clamped 8–25%) | 15.2% |
| Fair P/E | 15.2x |
| NTM EPS (FY2026) | $10.19 |
| Fair Value | $154.83 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.78 | — | — |
| FY2026E | $10.19 | +16.0% | 6 |
| FY2027E | $11.33 | +11.2% | 6 |
| FY2028E | $12.66 | +11.8% | 3 |
3Y Forward EPS CAGR: 13.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $740.1M | $8.83 | — |
| FY2022 | $757.1M | $9.21 | +4.3% |
| FY2023 | $503.0M | $6.20 | -32.7% |
| FY2024 | $704.9M | $8.73 | +40.8% |
| FY2025 | $688.0M | $8.78 | +0.6% |
4Y Historical EPS CAGR: -0.1%
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.