Using the PEG framework with analyst consensus forward EPS growth of 9.9% plus 1.0% dividend yield, The TJX Companies, Inc. has a fair value of $50.62 based on NTM EPS (FY2027) of $5.12. The current PEG ratio is 3.13.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.8% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%) | 9.9% |
| Fair P/E | 9.9x |
| NTM EPS (FY2027) | $5.12 |
| Fair Value | $50.62 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2026 (actual) | $4.88 | — | — |
| FY2027E | $5.12 | +4.9% | 14 |
| FY2028E | $5.67 | +10.8% | 13 |
| FY2029E | $6.22 | +9.7% | 4 |
| FY2030E | $6.85 | +10.0% | 3 |
4Y Forward EPS CAGR: 8.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2022 | $3.3B | $2.70 | — |
| FY2023 | $3.5B | $2.97 | +10.0% |
| FY2024 | $4.5B | $3.86 | +30.0% |
| FY2025 | $4.9B | $4.26 | +10.4% |
| FY2026 | $5.5B | $4.88 | +14.6% |
4Y Historical EPS CAGR: 15.9%
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.