Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.2% dividend yield, Johnson Controls International plc has a fair value of $118.50 based on NTM EPS (FY2026) of $4.74. The current PEG ratio is 1.04.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 25.5% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $4.74 |
| Fair Value | $118.50 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.63 | — | — |
| FY2026E | $4.74 | +80.2% | 14 |
| FY2027E | $5.52 | +16.5% | 14 |
| FY2028E | $6.23 | +12.8% | 11 |
| FY2029E | $7.20 | +15.5% | 5 |
| FY2030E | $8.18 | +13.6% | 5 |
5Y Forward EPS CAGR: 25.5%
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 | $1.6B | $2.27 | — |
| FY2022 | $1.5B | $2.19 | -3.5% |
| FY2023 | $1.8B | $2.69 | +22.8% |
| FY2024 | $1.7B | $2.52 | -6.3% |
| FY2025 | $3.3B | $2.63 | +4.4% |
4Y Historical EPS CAGR: 3.7%