Using the PEG framework with analyst consensus forward EPS growth of 18.2% plus 1.2% dividend yield, Eaton Corporation plc has a fair value of $242.88 based on NTM EPS (FY2026) of $13.37. The current PEG ratio is 1.48.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 17.0% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%) | 18.2% |
| Fair P/E | 18.2x |
| NTM EPS (FY2026) | $13.37 |
| Fair Value | $242.88 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $10.46 | — | — |
| FY2026E | $13.37 | +27.8% | 9 |
| FY2027E | $15.29 | +14.4% | 6 |
| FY2028E | $17.28 | +13.0% | 4 |
| FY2029E | $20.61 | +19.2% | 3 |
| FY2030E | $22.94 | +11.3% | 3 |
5Y Forward EPS CAGR: 17.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.1B | $5.34 | — |
| FY2022 | $2.5B | $6.14 | +15.0% |
| FY2023 | $3.2B | $8.02 | +30.6% |
| FY2024 | $3.8B | $9.50 | +18.5% |
| FY2025 | $4.1B | $10.46 | +10.1% |
4Y Historical EPS CAGR: 18.3%
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.