Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 0.1% dividend yield, Textron Inc. has a fair value of $51.68 based on NTM EPS (FY2027) of $6.46. The current PEG ratio is 2.10.
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 | 6.5% |
| Dividend Yield | +0.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2027) | $6.46 |
| Fair Value | $51.68 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.11 | — | — |
| FY2027E | $6.46 | +26.4% | 11 |
| FY2028E | $7.31 | +13.2% | 11 |
| FY2029E | $8.13 | +11.2% | 11 |
| FY2030E | $8.23 | +1.2% | 10 |
| FY2031E | $7.45 | -9.4% | 4 |
6Y Forward EPS CAGR: 6.5%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $746.0M | $3.30 | — |
| FY2022 | $861.0M | $4.01 | +21.5% |
| FY2023 | $921.0M | $4.56 | +13.7% |
| FY2024 | $824.0M | $4.33 | -5.0% |
| FY2025 | $921.0M | $5.11 | +18.0% |
4Y Historical EPS CAGR: 11.6%