Using the PEG framework with analyst consensus forward EPS growth of 25.0%, AppLovin Corporation has a fair value of $390.93 based on NTM EPS (FY2026) of $15.64. The current PEG ratio is 0.68.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 37.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $15.64 |
| Fair Value | $390.93 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $9.75 | — | — |
| FY2026E | $15.64 | +60.4% | 20 |
| FY2027E | $20.61 | +31.8% | 20 |
| FY2028E | $26.02 | +26.3% | 12 |
| FY2029E | $34.38 | +32.1% | 11 |
4Y Forward EPS CAGR: 37.0%
| Year | Net Income | EPS | YoY |
|---|
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.
| FY2021 | $35.4M | $0.09 | — |
| FY2022 | $-192.7M | $-0.52 | -659.1% |
| FY2023 | $356.7M | $0.98 | — |
| FY2024 | $1.6B | $4.53 | +362.2% |
| FY2025 | $3.3B | $9.75 | +115.2% |
4Y Historical EPS CAGR: 220.0%