Using the PEG framework with analyst consensus forward EPS growth of 21.3% plus 1.5% dividend yield, Rockwell Automation, Inc. has a fair value of $258.39 based on NTM EPS (FY2026) of $12.12. The current PEG ratio is 1.38.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 19.8% |
| Dividend Yield | +1.5% |
| Adjusted Growth (clamped 8–25%) | 21.3% |
| Fair P/E | 21.3x |
| NTM EPS (FY2026) | $12.12 |
| Fair Value | $258.39 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.67 | — | — |
| FY2026E | $12.12 | +58.1% | 20 |
| FY2027E | $13.68 | +12.9% | 20 |
| FY2028E | $15.29 | +11.8% | 14 |
| FY2029E | $17.08 | +11.7% | 7 |
| FY2030E | $18.96 | +11.0% | 7 |
5Y Forward EPS CAGR: 19.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.4B | $11.58 | — |
| FY2022 | $932.2M | $7.96 | -31.3% |
| FY2023 | $1.4B | $11.95 | +50.1% |
| FY2024 | $952.5M | $8.28 | -30.7% |
| FY2025 | $869.0M | $7.67 | -7.4% |
4Y Historical EPS CAGR: -9.8%
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.