Using the PEG framework with analyst consensus forward EPS growth of 15.6% plus 5.1% dividend yield, Kimberly-Clark Corporation has a fair value of $118.25 based on NTM EPS (FY2026) of $7.56. The current PEG ratio is 0.83.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.6% |
| Dividend Yield | +5.1% |
| Adjusted Growth (clamped 8–25%) | 15.6% |
| Fair P/E | 15.6x |
| NTM EPS (FY2026) | $7.56 |
| Fair Value | $118.25 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.07 | — | — |
| FY2026E | $7.56 | +24.6% | 10 |
| FY2027E | $7.68 | +1.6% | 9 |
| FY2028E | $8.21 | +6.8% | 5 |
3Y Forward EPS CAGR: 10.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.8B | $5.35 | — |
| FY2022 | $1.9B | $5.72 | +6.9% |
| FY2023 | $1.8B | $5.21 | -8.9% |
| FY2024 | $2.5B | $7.55 | +44.9% |
| FY2025 | $2.0B | $6.07 | -19.6% |
4Y Historical EPS CAGR: 3.2%
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.