Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 2.0% dividend yield, Cisco Systems, Inc. has a fair value of $103.85 based on NTM EPS (FY2026) of $4.15. The current PEG ratio is 0.76.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 24.1% |
| Dividend Yield | +2.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $4.15 |
| Fair Value | $103.85 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.55 | — | — |
| FY2026E | $4.15 | +62.9% | 16 |
| FY2027E | $4.52 | +8.8% | 19 |
| FY2028E | $4.88 | +7.9% | 15 |
3Y Forward EPS CAGR: 24.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $10.6B | $2.50 | — |
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 | $11.8B | $2.82 | +12.8% |
| FY2023 | $12.6B | $3.07 | +8.9% |
| FY2024 | $10.3B | $2.54 | -17.3% |
| FY2025 | $10.2B | $2.55 | +0.4% |
4Y Historical EPS CAGR: 0.5%