Using the PEG framework with analyst consensus forward EPS growth of 12.7% plus 0.4% dividend yield, Apple Inc. has a fair value of $108.02 based on NTM EPS (FY2026) of $8.48. The current PEG ratio is 2.30.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.3% |
| Dividend Yield | +0.4% |
| Adjusted Growth (clamped 8–25%) | 12.7% |
| Fair P/E | 12.7x |
| NTM EPS (FY2026) | $8.48 |
| Fair Value | $108.02 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.46 | — | — |
| FY2026E | $8.48 | +13.7% | 32 |
| FY2027E | $9.31 | +9.7% | 31 |
| FY2028E | $10.27 | +10.3% | 18 |
| FY2029E | $11.70 | +14.0% | 13 |
| FY2030E | $13.33 | +13.9% | 9 |
5Y Forward EPS CAGR: 12.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $94.7B | $5.61 | — |
| FY2022 | $99.8B | $6.11 | +8.9% |
| FY2023 | $97.0B | $6.13 | +0.3% |
| FY2024 | $93.7B | $6.08 | -0.8% |
| FY2025 | $112.0B | $7.46 | +22.7% |
4Y Historical EPS CAGR: 7.4%
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.