Using the PEG framework with analyst consensus forward EPS growth of 18.4%, DexCom, Inc. has a fair value of $45.88 based on NTM EPS (FY2026) of $2.49. The current PEG ratio is 1.45.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 18.4% |
| Adjusted Growth (clamped 8–25%) | 18.4% |
| Fair P/E | 18.4x |
| NTM EPS (FY2026) | $2.49 |
| Fair Value | $45.88 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.09 | — | — |
| FY2026E | $2.49 | +19.1% | 21 |
| FY2027E | $2.99 | +20.0% | 21 |
| FY2028E | $3.57 | +19.5% | 19 |
| FY2029E | $4.19 | +17.3% | 10 |
| FY2030E | $4.87 | +16.2% | 16 |
5Y Forward EPS CAGR: 18.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $216.9M | $0.51 | — |
| FY2022 | $341.2M | $0.80 | +56.9% |
| FY2023 | $541.5M | $1.30 | +62.5% |
| FY2024 | $576.2M | $1.42 | +9.2% |
| FY2025 | $836.3M | $2.09 | +47.2% |
4Y Historical EPS CAGR: 42.3%
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.