Using the PEG framework with analyst consensus forward EPS growth of 17.2% plus 2.1% dividend yield, Honeywell International Inc. has a fair value of $180.64 based on NTM EPS (FY2026) of $10.50. The current PEG ratio is 1.25.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.1% |
| Dividend Yield | +2.1% |
| Adjusted Growth (clamped 8–25%) | 17.2% |
| Fair P/E | 17.2x |
| NTM EPS (FY2026) | $10.50 |
| Fair Value | $180.64 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.99 | — | — |
| FY2026E | $10.50 | +31.4% | 16 |
| FY2027E | $11.53 | +9.8% | 16 |
| FY2028E | $12.65 | +9.7% | 13 |
| FY2029E | $14.04 | +11.0% | 12 |
4Y Forward EPS CAGR: 15.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $5.5B | $7.91 | — |
| FY2022 | $5.0B | $7.27 | -8.1% |
| FY2023 | $5.7B | $8.47 | +16.5% |
| FY2024 | $5.7B | $8.71 | +2.8% |
| FY2025 | $5.1B | $7.99 | -8.3% |
4Y Historical EPS CAGR: 0.3%
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.