Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 5.5% dividend yield, Franklin Resources, Inc. has a fair value of $64.90 based on NTM EPS (FY2026) of $2.60. The current PEG ratio is 0.11.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 78.0% |
| Dividend Yield | +5.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $2.60 |
| Fair Value | $64.90 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.91 | — | — |
| FY2026E | $2.60 | +185.3% | 3 |
| FY2027E | $2.88 | +11.0% | 3 |
2Y Forward EPS CAGR: 78.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.8B | $3.57 | — |
| FY2022 | $1.3B | $2.53 | -29.1% |
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.
| FY2023 | $882.8M | $1.72 | -32.0% |
| FY2024 | $464.8M | $0.85 | -50.6% |
| FY2025 | $524.9M | $0.91 | +7.1% |
4Y Historical EPS CAGR: -28.9%