Using the PEG framework with analyst consensus forward EPS growth of 10.8% plus 7.4% dividend yield, Campbell Soup Company has a fair value of $23.85 based on NTM EPS (FY2026) of $2.21. The current PEG ratio is 0.87.
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 | 3.4% |
| Dividend Yield | +7.4% |
| Adjusted Growth (clamped 8–25%) | 10.8% |
| Fair P/E | 10.8x |
| NTM EPS (FY2026) | $2.21 |
| Fair Value | $23.85 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.01 | — | — |
| FY2026E | $2.21 | +9.8% | 13 |
| FY2027E | $2.27 | +2.8% | 13 |
| FY2028E | $2.32 | +2.4% | 10 |
| FY2029E | $2.51 | +8.0% | 5 |
| FY2030E | $2.38 | -5.2% | 5 |
5Y Forward EPS CAGR: 3.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.0B | $3.29 | — |
| FY2022 | $757.0M | $2.51 | -23.7% |
| FY2023 | $858.0M | $2.85 | +13.5% |
| FY2024 | $567.0M | $1.89 | -33.7% |
| FY2025 | $602.0M | $2.01 | +6.3% |
4Y Historical EPS CAGR: -11.6%
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.