Using the PEG framework with analyst consensus forward EPS growth of 9.6% plus 0.8% dividend yield, Globe Life Inc. has a fair value of $147.92 based on NTM EPS (FY2026) of $15.35. The current PEG ratio is 0.94.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.8% |
| Dividend Yield | +0.8% |
| Adjusted Growth (clamped 8–25%) | 9.6% |
| Fair P/E | 9.6x |
| NTM EPS (FY2026) | $15.35 |
| Fair Value | $147.92 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $14.06 | — | — |
| FY2026E | $15.35 | +9.2% | 4 |
| FY2027E | $16.50 | +7.5% | 4 |
| FY2028E | $18.13 | +9.8% | 3 |
3Y Forward EPS CAGR: 8.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.0B | $7.22 | — |
| FY2022 | $894.4M | $9.04 | +25.2% |
| FY2023 | $970.8M | $10.07 | +11.4% |
| FY2024 | $1.1B | $11.94 | +18.6% |
| FY2025 | $1.2B | $14.06 | +17.8% |
4Y Historical EPS CAGR: 18.1%
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.