Using the PEG framework with analyst consensus forward EPS growth of 15.8% plus 4.1% dividend yield, Regions Financial Corporation has a fair value of $41.00 based on NTM EPS (FY2026) of $2.60. The current PEG ratio is 0.62.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.7% |
| Dividend Yield | +4.1% |
| Adjusted Growth (clamped 8–25%) | 15.8% |
| Fair P/E | 15.8x |
| NTM EPS (FY2026) | $2.60 |
| Fair Value | $41.00 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.29 | — | — |
| FY2026E | $2.60 | +13.6% | 9 |
| FY2027E | $2.86 | +10.0% | 8 |
| FY2028E | $3.19 | +11.6% | 3 |
3Y Forward EPS CAGR: 11.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.5B | $2.49 | — |
| FY2022 | $2.2B | $2.28 | -8.4% |
| FY2023 | $2.1B | $2.11 | -7.5% |
| FY2024 | $1.9B | $1.93 | -8.5% |
| FY2025 | $2.2B | $2.29 | +18.7% |
4Y Historical EPS CAGR: -2.1%
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.