Using the PEG framework with analyst consensus forward EPS growth of 11.4% plus 4.2% dividend yield, Bristol-Myers Squibb Company has a fair value of $71.42 based on NTM EPS (FY2026) of $6.26. The current PEG ratio is 0.83.
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 | 7.2% |
| Dividend Yield | +4.2% |
| Adjusted Growth (clamped 8–25%) | 11.4% |
| Fair P/E | 11.4x |
| NTM EPS (FY2026) | $6.26 |
| Fair Value | $71.42 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.45 | — | — |
| FY2026E | $6.26 | +81.5% | 19 |
| FY2027E | $6.13 | -2.1% | 19 |
| FY2028E | $5.45 | -11.1% | 21 |
| FY2029E | $4.91 | -9.8% | 10 |
| FY2030E | $4.89 | -0.4% | 10 |
5Y Forward EPS CAGR: 7.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $7.0B | $3.12 | — |
| FY2022 | $6.3B | $2.95 | -5.4% |
| FY2023 | $8.0B | $3.86 | +30.8% |
| FY2024 | $-8.9B | $-4.41 | -214.2% |
| FY2025 | $7.1B | $3.45 | — |
4Y Historical EPS CAGR: 2.5%
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.