Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.7% dividend yield, Cencora, Inc. has a fair value of $440.71 based on NTM EPS (FY2026) of $17.63. The current PEG ratio is 0.62.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 28.2% |
| Dividend Yield | +0.7% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $17.63 |
| Fair Value | $440.71 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.96 | — | — |
| FY2026E | $17.63 | +121.5% | 10 |
| FY2027E | $19.57 | +11.0% | 10 |
| FY2028E | $21.70 | +10.9% | 10 |
| FY2029E | $24.52 | +13.0% | 5 |
| FY2030E | $27.61 | +12.6% | 5 |
5Y Forward EPS CAGR: 28.2%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $1.5B | $7.39 | — |
| FY2022 | $1.7B | $8.04 | +8.8% |
| FY2023 | $1.7B | $8.53 | +6.1% |
| FY2024 | $1.5B | $7.53 | -11.7% |
| FY2025 | $1.6B | $7.96 | +5.7% |
4Y Historical EPS CAGR: 1.9%