Using the PEG framework with analyst consensus forward EPS growth of 14.4% plus 2.5% dividend yield, Coterra Energy Inc. has a fair value of $35.52 based on NTM EPS (FY2026) of $2.46. The current PEG ratio is 1.01.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.9% |
| Dividend Yield | +2.5% |
| Adjusted Growth (clamped 8–25%) | 14.4% |
| Fair P/E | 14.4x |
| NTM EPS (FY2026) | $2.46 |
| Fair Value | $35.52 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.25 | — | — |
| FY2026E | $2.46 | +9.3% | 8 |
| FY2027E | $2.82 | +14.6% | 7 |
2Y Forward EPS CAGR: 11.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.2B | $2.29 | — |
| FY2022 | $4.1B | $5.08 | +121.8% |
| FY2023 | $1.6B | $2.13 | -58.1% |
| FY2024 | $1.1B | $1.51 | -29.1% |
| FY2025 | $1.7B | $2.25 | +49.0% |
4Y Historical EPS CAGR: -0.4%
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.