Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.7% dividend yield, Carrier Global Corporation has a fair value of $69.61 based on NTM EPS (FY2026) of $2.78. The current PEG ratio is 0.71.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 26.2% |
| Dividend Yield | +1.7% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $2.78 |
| Fair Value | $69.61 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.70 | — | — |
| FY2026E | $2.78 | +63.8% | 16 |
| FY2027E | $3.17 | +13.8% | 15 |
| FY2028E | $3.61 | +13.9% | 10 |
| FY2029E | $4.31 | +19.4% | 5 |
4Y Forward EPS CAGR: 26.2%
| Year | Net Income | EPS | YoY |
|---|
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.
| FY2021 | $1.7B | $1.87 | — |
| FY2022 | $3.5B | $4.10 | +119.3% |
| FY2023 | $1.3B | $1.63 | -60.2% |
| FY2024 | $5.6B | $6.15 | +277.3% |
| FY2025 | $1.5B | $1.70 | -72.4% |
4Y Historical EPS CAGR: -2.4%