Using the PEG framework with analyst consensus forward EPS growth of 8.7% plus 3.0% dividend yield, The Procter & Gamble Company has a fair value of $60.67 based on NTM EPS (FY2026) of $6.96. The current PEG ratio is 2.35.
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 | 5.8% |
| Dividend Yield | +3.0% |
| Adjusted Growth (clamped 8–25%) | 8.7% |
| Fair P/E | 8.7x |
| NTM EPS (FY2026) | $6.96 |
| Fair Value | $60.67 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.51 | — | — |
| FY2026E | $6.96 | +6.9% | 17 |
| FY2027E | $7.33 | +5.3% | 17 |
| FY2028E | $7.79 | +6.2% | 14 |
| FY2029E | $8.12 | +4.2% | 10 |
| FY2030E | $8.61 | +6.1% | 7 |
5Y Forward EPS CAGR: 5.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $14.3B | $5.50 | — |
| FY2022 | $14.7B | $5.81 | +5.6% |
| FY2023 | $14.7B | $5.90 | +1.5% |
| FY2024 | $14.9B | $6.02 | +2.0% |
| FY2025 | $16.0B | $6.51 | +8.1% |
4Y Historical EPS CAGR: 4.3%
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.