Using the PEG framework with analyst consensus forward EPS growth of 24.3%, DaVita Inc. has a fair value of $344.08 based on NTM EPS (FY2026) of $14.13. The current PEG ratio is 0.46.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 24.3% |
| Adjusted Growth (clamped 8–25%) | 24.3% |
| Fair P/E | 24.3x |
| NTM EPS (FY2026) | $14.13 |
| Fair Value | $344.08 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $9.51 | — | — |
| FY2026E | $14.13 | +48.6% | 5 |
| FY2027E | $16.27 | +15.1% | 5 |
| FY2028E | $18.29 | +12.4% | 3 |
3Y Forward EPS CAGR: 24.3%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $978.5M | $8.90 | — |
| FY2022 | $560.4M | $5.71 | -35.8% |
| FY2023 | $691.5M | $7.42 | +29.9% |
| FY2024 | $936.3M | $10.73 | +44.6% |
| FY2025 | $746.8M | $9.51 | -11.4% |
4Y Historical EPS CAGR: 1.7%
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.