Using the PEG framework with analyst consensus forward EPS growth of 9.1% plus 1.1% dividend yield, The Walt Disney Company has a fair value of $59.67 based on NTM EPS (FY2026) of $6.59. The current PEG ratio is 1.59.
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 | 8.0% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%) | 9.1% |
| Fair P/E | 9.1x |
| NTM EPS (FY2026) | $6.59 |
| Fair Value | $59.67 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.85 | — | — |
| FY2026E | $6.59 | -3.8% | 22 |
| FY2027E | $7.33 | +11.3% | 21 |
| FY2028E | $8.12 | +10.8% | 15 |
| FY2029E | $9.07 | +11.7% | 7 |
| FY2030E | $10.06 | +10.9% | 7 |
5Y Forward EPS CAGR: 8.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.0B | $1.09 | — |
| FY2022 | $3.1B | $1.72 | +57.8% |
| FY2023 | $2.4B | $1.29 | -25.0% |
| FY2024 | $5.0B | $2.72 | +110.9% |
| FY2025 | $12.4B | $6.85 | +151.8% |
4Y Historical EPS CAGR: 58.3%
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.