Using the PEG framework with analyst consensus forward EPS growth of 22.9% plus 1.0% dividend yield, Cardinal Health, Inc. has a fair value of $236.12 based on NTM EPS (FY2026) of $10.31. The current PEG ratio is 0.88.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 21.9% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%) | 22.9% |
| Fair P/E | 22.9x |
| NTM EPS (FY2026) | $10.31 |
| Fair Value | $236.12 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.45 | — | — |
| FY2026E | $10.31 | +59.9% | 11 |
| FY2027E | $11.60 | +12.4% | 12 |
| FY2028E | $13.03 | +12.4% | 12 |
| FY2029E | $14.88 | +14.2% | 10 |
| FY2030E | $17.35 | +16.6% | 6 |
5Y Forward EPS CAGR: 21.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $611.0M | $2.08 | — |
| FY2022 | $-938.0M | $-3.34 | -260.6% |
| FY2023 | $330.0M | $1.26 | — |
| FY2024 | $852.0M | $3.45 | +173.8% |
| FY2025 | $1.6B | $6.45 | +87.0% |
4Y Historical EPS CAGR: 32.7%
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.