Using the PEG framework with analyst consensus forward EPS growth of 23.0% plus 5.8% dividend yield, Prudential Financial, Inc. has a fair value of $326.65 based on NTM EPS (FY2026) of $14.20. The current PEG ratio is 0.29.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 17.2% |
| Dividend Yield | +5.8% |
| Adjusted Growth (clamped 8–25%) | 23.0% |
| Fair P/E | 23.0x |
| NTM EPS (FY2026) | $14.20 |
| Fair Value | $326.65 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $10.22 | — | — |
| FY2026E | $14.20 | +39.0% | 8 |
| FY2027E | $15.36 | +8.1% | 8 |
| FY2028E | $16.44 | +7.1% | 5 |
3Y Forward EPS CAGR: 17.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $8.9B | $19.51 | — |
| FY2022 | $-1.6B | $-4.49 | -123.0% |
| FY2023 | $2.5B | $6.74 | — |
| FY2024 | $2.7B | $7.50 | +11.3% |
| FY2025 | $3.6B | $10.22 | +36.3% |
4Y Historical EPS CAGR: -14.9%
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.