Using the PEG framework with analyst consensus forward EPS growth of 13.9% plus 1.6% dividend yield, Quest Diagnostics Incorporated has a fair value of $147.36 based on NTM EPS (FY2026) of $10.64. The current PEG ratio is 1.34.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.2% |
| Dividend Yield | +1.6% |
| Adjusted Growth (clamped 8–25%) | 13.9% |
| Fair P/E | 13.9x |
| NTM EPS (FY2026) | $10.64 |
| Fair Value | $147.36 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.75 | — | — |
| FY2026E | $10.64 | +21.6% | 14 |
| FY2027E | $11.47 | +7.9% | 13 |
| FY2028E | $12.49 | +8.9% | 10 |
| FY2029E | $13.89 | +11.2% | 5 |
4Y Forward EPS CAGR: 12.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.0B | $15.53 | — |
| FY2022 | $946.0M | $7.98 | -48.6% |
| FY2023 | $854.0M | $7.52 | -5.8% |
| FY2024 | $871.0M | $7.69 | +2.3% |
| FY2025 | $992.0M | $8.75 | +13.8% |
4Y Historical EPS CAGR: -13.4%
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.