Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.6% dividend yield, Capital One Financial Corporation has a fair value of $505.82 based on NTM EPS (FY2026) of $20.23. The current PEG ratio is 0.09.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 102.5% |
| Dividend Yield | +1.6% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $20.23 |
| Fair Value | $505.82 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.36 | — | — |
| FY2026E | $20.23 | +502.2% | 13 |
| FY2027E | $24.64 | +21.8% | 13 |
| FY2028E | $27.92 | +13.3% | 5 |
3Y Forward EPS CAGR: 102.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $12.4B | $26.94 | — |
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.
| FY2022 | $7.4B | $17.91 | -33.5% |
| FY2023 | $4.9B | $11.95 | -33.3% |
| FY2024 | $4.8B | $11.59 | -3.0% |
| FY2025 | $2.5B | $3.36 | -71.0% |
4Y Historical EPS CAGR: -40.6%