Using the PEG framework with analyst consensus forward EPS growth of 8.6% plus 1.9% dividend yield, Devon Energy Corporation has a fair value of $31.46 based on NTM EPS (FY2026) of $3.65. The current PEG ratio is 1.63.
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 | 6.7% |
| Dividend Yield | +1.9% |
| Adjusted Growth (clamped 8–25%) | 8.6% |
| Fair P/E | 8.6x |
| NTM EPS (FY2026) | $3.65 |
| Fair Value | $31.46 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.20 | — | — |
| FY2026E | $3.65 | -13.1% | 7 |
| FY2027E | $4.44 | +21.6% | 6 |
| FY2028E | $5.34 | +20.4% | 4 |
| FY2029E | $5.09 | -4.7% | 3 |
| FY2030E | $5.80 | +13.9% | 3 |
5Y Forward EPS CAGR: 6.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.8B | $4.18 | — |
| FY2022 | $6.0B | $9.12 | +118.2% |
| FY2023 | $3.7B | $5.84 | -36.0% |
| FY2024 | $2.9B | $4.57 | -21.7% |
| FY2025 | $2.6B | $4.20 | -8.1% |
4Y Historical EPS CAGR: 0.1%
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.