Using the PEG framework with analyst consensus forward EPS growth of 16.9% plus 1.4% dividend yield, L3Harris Technologies, Inc. has a fair value of $195.87 based on NTM EPS (FY2027) of $11.59. The current PEG ratio is 1.79.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.5% |
| Dividend Yield | +1.4% |
| Adjusted Growth (clamped 8–25%) | 16.9% |
| Fair P/E | 16.9x |
| NTM EPS (FY2027) | $11.59 |
| Fair Value | $195.87 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.53 | — | — |
| FY2027E | $11.59 | +35.9% | 15 |
| FY2028E | $13.47 | +16.3% | 16 |
| FY2029E | $15.52 | +15.2% | 16 |
| FY2030E | $17.77 | +14.5% | 8 |
| FY2031E | $20.27 | +14.1% | 7 |
6Y Forward EPS CAGR: 15.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.8B | $9.08 | — |
| FY2022 | $1.1B | $5.49 | -39.5% |
| FY2023 | $1.2B | $6.44 | +17.3% |
| FY2024 | $1.5B | $7.87 | +22.2% |
| FY2025 | $1.6B | $8.53 | +8.4% |
4Y Historical EPS CAGR: -1.5%
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.