Using the PEG framework with analyst consensus forward EPS growth of 12.9% plus 1.1% dividend yield, Hubbell Incorporated has a fair value of $254.56 based on NTM EPS (FY2026) of $19.71. The current PEG ratio is 1.90.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.8% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%) | 12.9% |
| Fair P/E | 12.9x |
| NTM EPS (FY2026) | $19.71 |
| Fair Value | $254.56 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $16.54 | — | — |
| FY2026E | $19.71 | +19.2% | 11 |
| FY2027E | $21.50 | +9.1% | 11 |
| FY2028E | $23.11 | +7.5% | 6 |
3Y Forward EPS CAGR: 11.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $399.5M | $7.28 | — |
| FY2022 | $545.9M | $9.43 | +29.5% |
| FY2023 | $759.8M | $14.04 | +48.9% |
| FY2024 | $777.8M | $14.37 | +2.4% |
| FY2025 | $887.1M | $16.54 | +15.1% |
4Y Historical EPS CAGR: 22.8%
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.