Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 3.0% dividend yield, Citizens Financial Group, Inc. has a fair value of $128.04 based on NTM EPS (FY2026) of $5.12. The current PEG ratio is 0.38.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 27.6% |
| Dividend Yield | +3.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $5.12 |
| Fair Value | $128.04 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.86 | — | — |
| FY2026E | $5.12 | +32.7% | 8 |
| FY2027E | $6.28 | +22.7% | 8 |
2Y Forward EPS CAGR: 27.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.3B | $5.16 | — |
| FY2022 | $2.1B | $4.10 | -20.5% |
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 | $1.6B | $3.13 | -23.7% |
| FY2024 | $1.5B | $3.03 | -3.2% |
| FY2025 | $1.8B | $3.86 | +27.4% |
4Y Historical EPS CAGR: -7.0%