Using the PEG framework with analyst consensus forward EPS growth of 16.6% plus 2.7% dividend yield, Bank of America Corporation has a fair value of $71.78 based on NTM EPS (FY2026) of $4.33. The current PEG ratio is 0.67.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.9% |
| Dividend Yield | +2.7% |
| Adjusted Growth (clamped 8–25%) | 16.6% |
| Fair P/E | 16.6x |
| NTM EPS (FY2026) | $4.33 |
| Fair Value | $71.78 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.82 | — | — |
| FY2026E | $4.33 | +13.2% | 11 |
| FY2027E | $4.96 | +14.6% | 9 |
| FY2028E | $5.64 | +13.8% | 3 |
3Y Forward EPS CAGR: 13.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $32.0B | $3.57 | — |
| FY2022 | $27.5B | $3.19 | -10.6% |
| FY2023 | $26.5B | $3.08 | -3.4% |
| FY2024 | $27.1B | $3.22 | +4.5% |
| FY2025 | $30.5B | $3.82 | +18.6% |
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.