Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 1.2% dividend yield, Chubb Limited has a fair value of $214.31 based on NTM EPS (FY2026) of $26.79. The current PEG ratio is 1.63.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.2% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $26.79 |
| Fair Value | $214.31 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $25.73 | — | — |
| FY2026E | $26.79 | +4.1% | 6 |
| FY2027E | $29.04 | +8.4% | 6 |
2Y Forward EPS CAGR: 6.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $8.5B | $19.27 | — |
| FY2022 | $5.2B | $12.39 | -35.7% |
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.
| FY2023 | $9.0B | $21.80 | +75.9% |
| FY2024 | $9.3B | $22.70 | +4.1% |
| FY2025 | $10.3B | $25.73 | +13.3% |
4Y Historical EPS CAGR: 7.5%