Using the PEG framework with analyst consensus forward EPS growth of 16.0% plus 2.7% dividend yield, Colgate-Palmolive Company has a fair value of $61.97 based on NTM EPS (FY2026) of $3.87. The current PEG ratio is 1.37.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.3% |
| Dividend Yield | +2.7% |
| Adjusted Growth (clamped 8–25%) | 16.0% |
| Fair P/E | 16.0x |
| NTM EPS (FY2026) | $3.87 |
| Fair Value | $61.97 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.63 | — | — |
| FY2026E | $3.87 | +47.0% | 14 |
| FY2027E | $4.12 | +6.5% | 14 |
| FY2028E | $4.43 | +7.6% | 10 |
| FY2029E | $4.68 | +5.6% | 5 |
| FY2030E | $4.92 | +5.1% | 5 |
5Y Forward EPS CAGR: 13.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.2B | $2.55 | — |
| FY2022 | $1.8B | $2.13 | -16.5% |
| FY2023 | $2.3B | $2.77 | +30.0% |
| FY2024 | $2.9B | $3.51 | +26.7% |
| FY2025 | $2.1B | $2.63 | -25.1% |
4Y Historical EPS CAGR: 0.8%
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.