Using the PEG framework with analyst consensus forward EPS growth of 14.2% plus 2.9% dividend yield, M&T Bank Corporation has a fair value of $267.27 based on NTM EPS (FY2026) of $18.77. The current PEG ratio is 0.77.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.3% |
| Dividend Yield | +2.9% |
| Adjusted Growth (clamped 8–25%) | 14.2% |
| Fair P/E | 14.2x |
| NTM EPS (FY2026) | $18.77 |
| Fair Value | $267.27 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $17.00 | — | — |
| FY2026E | $18.77 | +10.4% | 9 |
| FY2027E | $21.06 | +12.2% | 9 |
2Y Forward EPS CAGR: 11.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.9B | $13.80 | — |
| FY2022 | $2.0B | $11.53 | -16.4% |
| FY2023 | $2.7B | $15.79 | +36.9% |
| FY2024 | $2.6B | $14.64 | -7.3% |
| FY2025 | $2.9B | $17.00 | +16.1% |
4Y Historical EPS CAGR: 5.4%
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.