Using the PEG framework with analyst consensus forward EPS growth of 12.3% plus 1.8% dividend yield, The Bank of New York Mellon Corporation has a fair value of $102.52 based on NTM EPS (FY2026) of $8.35. The current PEG ratio is 1.14.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.5% |
| Dividend Yield | +1.8% |
| Adjusted Growth (clamped 8–25%) | 12.3% |
| Fair P/E | 12.3x |
| NTM EPS (FY2026) | $8.35 |
| Fair Value | $102.52 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.41 | — | — |
| FY2026E | $8.35 | +12.7% | 11 |
| FY2027E | $9.31 | +11.5% | 10 |
| FY2028E | $10.00 | +7.4% | 5 |
3Y Forward EPS CAGR: 10.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.8B | $4.15 | — |
| FY2022 | $2.6B | $2.90 | -30.1% |
| FY2023 | $3.3B | $3.89 | +34.1% |
| FY2024 | $4.5B | $5.80 | +49.1% |
| FY2025 | $5.5B | $7.41 | +27.8% |
4Y Historical EPS CAGR: 15.6%
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.