Using the PEG framework with analyst consensus forward EPS growth of 19.1% plus 2.5% dividend yield, State Street Corporation has a fair value of $222.86 based on NTM EPS (FY2026) of $11.65. The current PEG ratio is 0.56.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 16.6% |
| Dividend Yield | +2.5% |
| Adjusted Growth (clamped 8–25%) | 19.1% |
| Fair P/E | 19.1x |
| NTM EPS (FY2026) | $11.65 |
| Fair Value | $222.86 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $9.40 | — | — |
| FY2026E | $11.65 | +23.9% | 11 |
| FY2027E | $13.02 | +11.8% | 11 |
| FY2028E | $14.90 | +14.4% | 5 |
3Y Forward EPS CAGR: 16.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.7B | $7.19 | — |
| FY2022 | $2.8B | $7.19 | +0.0% |
| FY2023 | $1.9B | $5.58 | -22.4% |
| FY2024 | $2.7B | $8.21 | +47.1% |
| FY2025 | $2.9B | $9.40 | +14.5% |
4Y Historical EPS CAGR: 6.9%
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.