Using the PEG framework with analyst consensus forward EPS growth of 9.1% plus 0.5% dividend yield, GE Aerospace has a fair value of $67.68 based on NTM EPS (FY2026) of $7.45. The current PEG ratio is 4.20.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.6% |
| Dividend Yield | +0.5% |
| Adjusted Growth (clamped 8–25%) | 9.1% |
| Fair P/E | 9.1x |
| NTM EPS (FY2026) | $7.45 |
| Fair Value | $67.68 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.16 | — | — |
| FY2026E | $7.45 | -8.7% | 11 |
| FY2027E | $8.56 | +15.0% | 10 |
| FY2028E | $9.74 | +13.8% | 12 |
| FY2029E | $10.84 | +11.3% | 11 |
| FY2030E | $12.33 | +13.7% | 6 |
5Y Forward EPS CAGR: 8.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-6.3B | $-6.16 | — |
| FY2022 | $336.0M | $0.04 | — |
| FY2023 | $9.5B | $8.36 | +19341.9% |
| FY2024 | $6.6B | $5.99 | -28.3% |
| FY2025 | $8.7B | $8.16 | +36.2% |
4Y Historical EPS CAGR: 6449.9%
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.