Using the PEG framework with analyst consensus forward EPS growth of 13.5% plus 0.9% dividend yield, Moody's Corporation has a fair value of $225.39 based on NTM EPS (FY2026) of $16.74. The current PEG ratio is 1.92.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.5% |
| Dividend Yield | +0.9% |
| Adjusted Growth (clamped 8–25%) | 13.5% |
| Fair P/E | 13.5x |
| NTM EPS (FY2026) | $16.74 |
| Fair Value | $225.39 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $13.67 | — | — |
| FY2026E | $16.74 | +22.5% | 15 |
| FY2027E | $18.76 | +12.0% | 16 |
| FY2028E | $20.91 | +11.5% | 12 |
| FY2029E | $22.38 | +7.0% | 11 |
| FY2030E | $24.69 | +10.3% | 6 |
5Y Forward EPS CAGR: 12.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.2B | $11.78 | — |
| FY2022 | $1.4B | $7.44 | -36.8% |
| FY2023 | $1.6B | $8.73 | +17.3% |
| FY2024 | $2.1B | $11.26 | +29.0% |
| FY2025 | $2.5B | $13.67 | +21.4% |
4Y Historical EPS CAGR: 3.8%
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.