Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.9% dividend yield, Booking Holdings Inc. has a fair value of $6,715.22 based on NTM EPS (FY2026) of $268.61. The current PEG ratio is 0.61.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 24.5% |
| Dividend Yield | +0.9% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $268.61 |
| Fair Value | $6,715.22 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $165.57 | — | — |
| FY2026E | $268.61 | +62.2% | 25 |
| FY2027E | $313.81 | +16.8% | 26 |
| FY2028E | $365.30 | +16.4% | 19 |
| FY2029E | $432.11 | +18.3% | 10 |
| FY2030E | $495.22 | +14.6% | 16 |
5Y Forward EPS CAGR: 24.5%
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 | $1.2B | $28.17 | — |
| FY2022 | $3.1B | $76.35 | +171.0% |
| FY2023 | $4.3B | $117.40 | +53.8% |
| FY2024 | $5.9B | $172.69 | +47.1% |
| FY2025 | $5.4B | $165.57 | -4.1% |
4Y Historical EPS CAGR: 55.7%