Using the PEG framework with analyst consensus forward EPS growth of 14.5% plus 1.4% dividend yield, RTX Corporation has a fair value of $99.39 based on NTM EPS (FY2026) of $6.84. The current PEG ratio is 1.93.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.2% |
| Dividend Yield | +1.4% |
| Adjusted Growth (clamped 8–25%) | 14.5% |
| Fair P/E | 14.5x |
| NTM EPS (FY2026) | $6.84 |
| Fair Value | $99.39 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.96 | — | — |
| FY2026E | $6.84 | +37.8% | 16 |
| FY2027E | $7.56 | +10.6% | 15 |
| FY2028E | $8.31 | +9.9% | 16 |
| FY2029E | $8.78 | +5.7% | 15 |
| FY2030E | $9.20 | +4.8% | 15 |
5Y Forward EPS CAGR: 13.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.9B | $2.56 | — |
| FY2022 | $5.2B | $3.50 | +36.7% |
| FY2023 | $3.2B | $2.23 | -36.3% |
| FY2024 | $4.8B | $3.55 | +59.2% |
| FY2025 | $6.7B | $4.96 | +39.7% |
4Y Historical EPS CAGR: 18.0%
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.