Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 5.0% dividend yield, Hormel Foods Corporation has a fair value of $36.86 based on NTM EPS (FY2026) of $1.47. The current PEG ratio is 0.52.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 24.5% |
| Dividend Yield | +5.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $1.47 |
| Fair Value | $36.86 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.87 | — | — |
| FY2026E | $1.47 | +69.4% | 7 |
| FY2027E | $1.58 | +7.3% | 7 |
| FY2028E | $1.68 | +6.2% | 4 |
3Y Forward EPS CAGR: 24.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $908.8M | $1.66 | — |
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.
| FY2022 | $1000.0M | $1.82 | +9.6% |
| FY2023 | $793.6M | $1.45 | -20.3% |
| FY2024 | $805.0M | $1.47 | +1.4% |
| FY2025 | $478.2M | $0.87 | -40.8% |
4Y Historical EPS CAGR: -14.9%