Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 3.1% dividend yield, AbbVie Inc. has a fair value of $364.23 based on NTM EPS (FY2026) of $14.57. The current PEG ratio is 0.26.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 53.4% |
| Dividend Yield | +3.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $14.57 |
| Fair Value | $364.23 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.36 | — | — |
| FY2026E | $14.57 | +517.3% | 21 |
| FY2027E | $16.19 | +11.1% | 21 |
| FY2028E | $17.87 | +10.4% | 22 |
| FY2029E | $19.55 | +9.4% | 15 |
| FY2030E | $20.05 | +2.6% | 11 |
5Y Forward EPS CAGR: 53.4%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $11.5B | $6.45 | — |
| FY2022 | $11.8B | $6.63 | +2.8% |
| FY2023 | $4.9B | $2.72 | -59.0% |
| FY2024 | $4.3B | $2.39 | -12.1% |
| FY2025 | $4.2B | $2.36 | -1.3% |
4Y Historical EPS CAGR: -22.2%