Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 1.5% dividend yield, The Travelers Companies, Inc. has a fair value of $217.23 based on NTM EPS (FY2026) of $27.15. The current PEG ratio is 3.67.
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 | 1.4% |
| Dividend Yield | +1.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $27.15 |
| Fair Value | $217.23 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $27.43 | — | — |
| FY2026E | $27.15 | -1.0% | 12 |
| FY2027E | $28.30 | +4.2% | 11 |
| FY2028E | $28.61 | +1.1% | 3 |
3Y Forward EPS CAGR: 1.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.7B | $14.49 | — |
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.
| FY2022 | $2.8B | $11.77 | -18.8% |
| FY2023 | $3.0B | $12.79 | +8.7% |
| FY2024 | $5.0B | $21.47 | +67.9% |
| FY2025 | $6.3B | $27.43 | +27.8% |
4Y Historical EPS CAGR: 17.3%