Using the PEG framework with analyst consensus forward EPS growth of 12.9% plus 1.4% dividend yield, Huntington Ingalls Industries, Inc. has a fair value of $223.58 based on NTM EPS (FY2026) of $17.28. The current PEG ratio is 1.74.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.5% |
| Dividend Yield | +1.4% |
| Adjusted Growth (clamped 8–25%) | 12.9% |
| Fair P/E | 12.9x |
| NTM EPS (FY2026) | $17.28 |
| Fair Value | $223.58 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $15.39 | — | — |
| FY2026E | $17.28 | +12.3% | 10 |
| FY2027E | $20.31 | +17.5% | 9 |
| FY2028E | $23.49 | +15.6% | 8 |
| FY2029E | $23.53 | +0.2% | 7 |
| FY2030E | $26.57 | +12.9% | 7 |
5Y Forward EPS CAGR: 11.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $544.0M | $13.50 | — |
| FY2022 | $579.0M | $14.44 | +7.0% |
| FY2023 | $681.0M | $17.07 | +18.2% |
| FY2024 | $550.0M | $13.96 | -18.2% |
| FY2025 | $605.0M | $15.39 | +10.2% |
4Y Historical EPS CAGR: 3.3%
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.