Using the PEG framework with analyst consensus forward EPS growth of 8.3% plus 1.5% dividend yield, Baker Hughes Company has a fair value of $21.78 based on NTM EPS (FY2026) of $2.64. The current PEG ratio is 2.87.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.8% |
| Dividend Yield | +1.5% |
| Adjusted Growth (clamped 8–25%) | 8.3% |
| Fair P/E | 8.3x |
| NTM EPS (FY2026) | $2.64 |
| Fair Value | $21.78 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.60 | — | — |
| FY2026E | $2.64 | +1.4% | 12 |
| FY2027E | $3.03 | +14.7% | 12 |
| FY2028E | $3.40 | +12.4% | 9 |
| FY2029E | $3.32 | -2.4% | 4 |
| FY2030E | $3.61 | +8.7% | 4 |
5Y Forward EPS CAGR: 6.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-219.0M | $-0.27 | — |
| FY2022 | $-601.0M | $-0.61 | — |
| FY2023 | $1.9B | $1.91 | — |
| FY2024 | $3.0B | $2.98 | +56.0% |
| FY2025 | $2.6B | $2.60 | -12.8% |
4Y Historical EPS CAGR: 21.6%
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.