Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.8% dividend yield, Broadcom Inc. has a fair value of $280.07 based on NTM EPS (FY2026) of $11.20. The current PEG ratio is 0.70.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 39.0% |
| Dividend Yield | +0.8% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $11.20 |
| Fair Value | $280.07 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.77 | — | — |
| FY2026E | $11.20 | +134.9% | 29 |
| FY2027E | $17.63 | +57.4% | 35 |
| FY2028E | $22.03 | +24.9% | 18 |
| FY2029E | $18.22 | -17.3% | 9 |
| FY2030E | $24.78 | +36.0% | 9 |
5Y Forward EPS CAGR: 39.0%
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 | $6.7B | $1.50 | — |
| FY2022 | $11.5B | $2.65 | +76.7% |
| FY2023 | $14.1B | $3.30 | +24.5% |
| FY2024 | $5.9B | $1.23 | -62.7% |
| FY2025 | $23.1B | $4.77 | +287.8% |
4Y Historical EPS CAGR: 33.5%