Using the PEG framework with analyst consensus forward EPS growth of 19.8% plus 2.2% dividend yield, Abbott Laboratories has a fair value of $112.48 based on NTM EPS (FY2026) of $5.68. The current PEG ratio is 0.94.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 17.6% |
| Dividend Yield | +2.2% |
| Adjusted Growth (clamped 8–25%) | 19.8% |
| Fair P/E | 19.8x |
| NTM EPS (FY2026) | $5.68 |
| Fair Value | $112.48 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.72 | — | — |
| FY2026E | $5.68 | +52.6% | 22 |
| FY2027E | $6.24 | +10.0% | 21 |
| FY2028E | $6.87 | +10.0% | 19 |
| FY2029E | $7.56 | +10.1% | 10 |
| FY2030E | $8.36 | +10.6% | 16 |
5Y Forward EPS CAGR: 17.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $7.1B | $3.94 | — |
| FY2022 | $6.9B | $3.91 | -0.8% |
| FY2023 | $5.7B | $3.27 | -16.4% |
| FY2024 | $13.4B | $7.64 | +133.6% |
| FY2025 | $6.5B | $3.72 | -51.3% |
4Y Historical EPS CAGR: -1.4%
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.