Using the PEG framework with analyst consensus forward EPS growth of 10.3% plus 5.8% dividend yield, T. Rowe Price Group, Inc. has a fair value of $103.53 based on NTM EPS (FY2026) of $10.01. The current PEG ratio is 0.88.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 4.6% |
| Dividend Yield | +5.8% |
| Adjusted Growth (clamped 8–25%) | 10.3% |
| Fair P/E | 10.3x |
| NTM EPS (FY2026) | $10.01 |
| Fair Value | $103.53 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $9.25 | — | — |
| FY2026E | $10.01 | +8.2% | 6 |
| FY2027E | $10.11 | +1.0% | 6 |
2Y Forward EPS CAGR: 4.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.1B | $13.12 | — |
| FY2022 | $1.6B | $6.70 | -48.9% |
| FY2023 | $1.8B | $7.76 | +15.8% |
| FY2024 | $2.1B | $9.15 | +17.9% |
| FY2025 | $2.1B | $9.25 | +1.1% |
4Y Historical EPS CAGR: -8.4%
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.