Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 7.0% dividend yield, General Mills, Inc. has a fair value of $27.41 based on NTM EPS (FY2026) of $3.43. The current PEG ratio is 3.39.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is unreliable for companies with declining earnings.
| EPS Growth RateForward | -3.9% |
| Dividend Yield | +7.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $3.43 |
| Fair Value | $27.41 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.10 | — | — |
| FY2026E | $3.43 | -16.4% | 13 |
| FY2027E | $3.29 | -4.0% | 13 |
| FY2028E | $3.42 | +3.9% | 11 |
| FY2029E | $3.68 | +7.6% | 5 |
| FY2030E | $3.36 | -8.5% | 5 |
5Y Forward EPS CAGR: -3.9%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $2.3B | $3.78 | — |
| FY2022 | $2.7B | $4.42 | +16.9% |
| FY2023 | $2.6B | $4.31 | -2.5% |
| FY2024 | $2.5B | $4.31 | +0.0% |
| FY2025 | $2.3B | $4.10 | -4.9% |
4Y Historical EPS CAGR: 2.1%