Using the PEG framework with analyst consensus forward EPS growth of 9.5% plus 4.8% dividend yield, The Clorox Company has a fair value of $56.32 based on NTM EPS (FY2026) of $5.91. The current PEG ratio is 1.83.
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 | 4.7% |
| Dividend Yield | +4.8% |
| Adjusted Growth (clamped 8–25%) | 9.5% |
| Fair P/E | 9.5x |
| NTM EPS (FY2026) | $5.91 |
| Fair Value | $56.32 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.52 | — | — |
| FY2026E | $5.91 | -9.3% | 13 |
| FY2027E | $6.79 | +14.9% | 10 |
| FY2028E | $7.21 | +6.1% | 8 |
| FY2029E | $7.85 | +8.9% | 6 |
| FY2030E | $8.21 | +4.6% | 6 |
5Y Forward EPS CAGR: 4.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $710.0M | $5.58 | — |
| FY2022 | $462.0M | $3.73 | -33.2% |
| FY2023 | $149.0M | $1.20 | -67.8% |
| FY2024 | $280.0M | $2.25 | +87.5% |
| FY2025 | $810.0M | $6.52 | +189.8% |
4Y Historical EPS CAGR: 4.0%
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.