Using the PEG framework with analyst consensus forward EPS growth of 19.4% plus 4.8% dividend yield, Truist Financial Corporation has a fair value of $86.83 based on NTM EPS (FY2026) of $4.47. The current PEG ratio is 0.52.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.6% |
| Dividend Yield | +4.8% |
| Adjusted Growth (clamped 8–25%) | 19.4% |
| Fair P/E | 19.4x |
| NTM EPS (FY2026) | $4.47 |
| Fair Value | $86.83 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.82 | — | — |
| FY2026E | $4.47 | +17.1% | 10 |
| FY2027E | $5.08 | +13.6% | 10 |
| FY2028E | $5.76 | +13.2% | 3 |
3Y Forward EPS CAGR: 14.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $6.4B | $4.47 | — |
| FY2022 | $6.3B | $4.43 | -0.9% |
| FY2023 | $-1.1B | $-1.09 | -124.6% |
| FY2024 | $4.8B | $3.36 | — |
| FY2025 | $5.3B | $3.82 | +13.7% |
4Y Historical EPS CAGR: -3.9%
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.