Using the PEG framework with analyst consensus forward EPS growth of 17.4% plus 0.2% dividend yield, Howmet Aerospace Inc. has a fair value of $79.98 based on NTM EPS (FY2026) of $4.61. The current PEG ratio is 2.90.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 17.2% |
| Dividend Yield | +0.2% |
| Adjusted Growth (clamped 8–25%) | 17.4% |
| Fair P/E | 17.4x |
| NTM EPS (FY2026) | $4.61 |
| Fair Value | $79.98 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.71 | — | — |
| FY2026E | $4.61 | +24.2% | 15 |
| FY2027E | $5.50 | +19.3% | 14 |
| FY2028E | $6.37 | +15.8% | 16 |
| FY2029E | $7.12 | +11.8% | 15 |
| FY2030E | $8.19 | +15.1% | 15 |
5Y Forward EPS CAGR: 17.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $258.0M | $0.59 | — |
| FY2022 | $469.0M | $1.11 | +88.1% |
| FY2023 | $765.0M | $1.83 | +64.9% |
| FY2024 | $1.2B | $2.81 | +53.6% |
| FY2025 | $1.5B | $3.71 | +32.0% |
4Y Historical EPS CAGR: 58.4%
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.