Using the PEG framework with analyst consensus forward EPS growth of 19.2% plus 0.7% dividend yield, Danaher Corporation has a fair value of $161.79 based on NTM EPS (FY2026) of $8.41. The current PEG ratio is 1.16.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 18.6% |
| Dividend Yield | +0.7% |
| Adjusted Growth (clamped 8–25%) | 19.2% |
| Fair P/E | 19.2x |
| NTM EPS (FY2026) | $8.41 |
| Fair Value | $161.79 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.04 | — | — |
| FY2026E | $8.41 | +66.9% | 19 |
| FY2027E | $9.11 | +8.3% | 18 |
| FY2028E | $10.01 | +9.9% | 14 |
| FY2029E | $10.88 | +8.7% | 9 |
| FY2030E | $11.81 | +8.6% | 13 |
5Y Forward EPS CAGR: 18.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $6.4B | $8.61 | — |
| FY2022 | $7.2B | $9.64 | +12.0% |
| FY2023 | $4.8B | $6.38 | -33.8% |
| FY2024 | $3.9B | $5.29 | -17.1% |
| FY2025 | $3.6B | $5.04 | -4.7% |
4Y Historical EPS CAGR: -12.5%
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.