Using the PEG framework with analyst consensus forward EPS growth of 11.8% plus 1.1% dividend yield, Lennox International Inc. has a fair value of $285.03 based on NTM EPS (FY2026) of $24.14. The current PEG ratio is 1.55.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.7% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%) | 11.8% |
| Fair P/E | 11.8x |
| NTM EPS (FY2026) | $24.14 |
| Fair Value | $285.03 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $22.22 | — | — |
| FY2026E | $24.14 | +8.6% | 17 |
| FY2027E | $26.37 | +9.2% | 16 |
| FY2028E | $28.61 | +8.5% | 9 |
| FY2029E | $30.49 | +6.6% | 4 |
| FY2030E | $36.93 | +21.1% | 4 |
5Y Forward EPS CAGR: 10.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $464.0M | $12.37 | — |
| FY2022 | $497.1M | $13.89 | +12.3% |
| FY2023 | $590.1M | $16.53 | +19.0% |
| FY2024 | $806.9M | $22.54 | +36.4% |
| FY2025 | $786.2M | $22.22 | -1.4% |
4Y Historical EPS CAGR: 15.8%
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.