Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 2.5% dividend yield, The Hershey Company has a fair value of $209.59 based on NTM EPS (FY2026) of $8.38. The current PEG ratio is 0.95.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 23.9% |
| Dividend Yield | +2.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $8.38 |
| Fair Value | $209.59 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.34 | — | — |
| FY2026E | $8.38 | +93.2% | 16 |
| FY2027E | $9.86 | +17.6% | 17 |
| FY2028E | $11.01 | +11.7% | 12 |
| FY2029E | $12.13 | +10.1% | 11 |
| FY2030E | $12.70 | +4.7% | 6 |
5Y Forward EPS CAGR: 23.9%
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 | $1.5B | $7.11 | — |
| FY2022 | $1.6B | $7.96 | +12.0% |
| FY2023 | $1.9B | $9.06 | +13.8% |
| FY2024 | $2.2B | $10.94 | +20.8% |
| FY2025 | $883.3M | $4.34 | -60.3% |
4Y Historical EPS CAGR: -11.6%