Using the PEG framework with analyst consensus forward EPS growth of 8.8% plus 2.0% dividend yield, Dollar General Corporation has a fair value of $64.10 based on NTM EPS (FY2027) of $7.30. The current PEG ratio is 1.87.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.8% |
| Dividend Yield | +2.0% |
| Adjusted Growth (clamped 8–25%) | 8.8% |
| Fair P/E | 8.8x |
| NTM EPS (FY2027) | $7.30 |
| Fair Value | $64.10 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.85 | — | — |
| FY2027E | $7.30 | +6.5% | 25 |
| FY2028E | $8.02 | +9.9% | 26 |
| FY2029E | $8.80 | +9.7% | 11 |
| FY2030E | $9.44 | +7.3% | 5 |
| FY2031E | $10.18 | +7.8% | 4 |
6Y Forward EPS CAGR: 6.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.4B | $10.17 | — |
| FY2022 | $2.4B | $10.68 | +5.0% |
| FY2023 | $1.7B | $7.55 | -29.3% |
| FY2024 | $1.1B | $5.11 | -32.3% |
| FY2025 | $1.5B | $6.85 | +34.1% |
4Y Historical EPS CAGR: -9.4%
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.