Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 9.2% dividend yield, Conagra Brands, Inc. has a fair value of $13.78 based on NTM EPS (FY2026) of $1.72. The current PEG ratio is 1.42.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is unreliable for companies with declining earnings.
| EPS Growth RateForward | -3.0% |
| Dividend Yield | +9.2% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $1.72 |
| Fair Value | $13.78 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.41 | — | — |
| FY2026E | $1.72 | -28.5% | 12 |
| FY2027E | $1.78 | +3.6% | 12 |
| FY2028E | $1.89 | +6.2% | 12 |
| FY2029E | $2.06 | +8.7% | 6 |
| FY2030E | $2.07 | +0.7% | 6 |
5Y Forward EPS CAGR: -3.0%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $1.3B | $2.66 | — |
| FY2022 | $888.2M | $1.84 | -30.8% |
| FY2023 | $683.6M | $1.42 | -22.8% |
| FY2024 | $347.2M | $0.72 | -49.3% |
| FY2025 | $1.2B | $2.41 | +234.7% |
4Y Historical EPS CAGR: -2.4%