Using the PEG framework with analyst consensus forward EPS growth of 9.5% plus 3.5% dividend yield, McCormick & Company, Incorporated has a fair value of $29.36 based on NTM EPS (FY2026) of $3.09. The current PEG ratio is 1.77.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.0% |
| Dividend Yield | +3.5% |
| Adjusted Growth (clamped 8–25%) | 9.5% |
| Fair P/E | 9.5x |
| NTM EPS (FY2026) | $3.09 |
| Fair Value | $29.36 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.93 | — | — |
| FY2026E | $3.09 | +5.6% | 9 |
| FY2027E | $3.35 | +8.4% | 9 |
| FY2028E | $3.67 | +9.4% | 9 |
| FY2029E | $3.75 | +2.3% | 4 |
| FY2030E | $3.92 | +4.6% | 4 |
5Y Forward EPS CAGR: 6.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $755.3M | $2.80 | — |
| FY2022 | $682.0M | $2.52 | -10.0% |
| FY2023 | $680.6M | $2.52 | +0.0% |
| FY2024 | $788.5M | $2.92 | +15.9% |
| FY2025 | $789.4M | $2.93 | +0.3% |
4Y Historical EPS CAGR: 1.1%
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.