Using the PEG framework with analyst consensus forward EPS growth of 18.5% plus 3.8% dividend yield, Fifth Third Bancorp has a fair value of $62.38 based on NTM EPS (FY2026) of $3.38. The current PEG ratio is 0.73.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.6% |
| Dividend Yield | +3.8% |
| Adjusted Growth (clamped 8–25%) | 18.5% |
| Fair P/E | 18.5x |
| NTM EPS (FY2026) | $3.38 |
| Fair Value | $62.38 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.54 | — | — |
| FY2026E | $3.38 | -4.5% | 9 |
| FY2027E | $4.88 | +44.4% | 8 |
| FY2028E | $5.33 | +9.2% | 4 |
3Y Forward EPS CAGR: 14.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.8B | $3.73 | — |
| FY2022 | $2.4B | $3.35 | -10.2% |
| FY2023 | $2.3B | $3.22 | -3.9% |
| FY2024 | $2.3B | $3.14 | -2.5% |
| FY2025 | $2.5B | $3.54 | +12.7% |
4Y Historical EPS CAGR: -1.3%
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.