Using the PEG framework with analyst consensus forward EPS growth of 17.2% plus 1.5% dividend yield, 3M Company has a fair value of $149.10 based on NTM EPS (FY2026) of $8.67. The current PEG ratio is 0.97.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.7% |
| Dividend Yield | +1.5% |
| Adjusted Growth (clamped 8–25%) | 17.2% |
| Fair P/E | 17.2x |
| NTM EPS (FY2026) | $8.67 |
| Fair Value | $149.10 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.00 | — | — |
| FY2026E | $8.67 | +44.5% | 10 |
| FY2027E | $9.44 | +8.9% | 10 |
| FY2028E | $10.16 | +7.7% | 4 |
| FY2029E | $11.43 | +12.5% | 3 |
| FY2030E | $12.42 | +8.7% | 3 |
5Y Forward EPS CAGR: 15.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $5.9B | $10.12 | — |
| FY2022 | $5.8B | $10.18 | +0.6% |
| FY2023 | $-7.0B | $-12.63 | -224.1% |
| FY2024 | $4.2B | $7.55 | — |
| FY2025 | $3.3B | $6.00 | -20.5% |
4Y Historical EPS CAGR: -12.3%
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.