Using the PEG framework with analyst consensus forward EPS growth of 16.4% plus 1.3% dividend yield, eBay Inc. has a fair value of $99.35 based on NTM EPS (FY2026) of $6.05. The current PEG ratio is 0.90.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.1% |
| Dividend Yield | +1.3% |
| Adjusted Growth (clamped 8–25%) | 16.4% |
| Fair P/E | 16.4x |
| NTM EPS (FY2026) | $6.05 |
| Fair Value | $99.35 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.34 | — | — |
| FY2026E | $6.05 | +39.5% | 20 |
| FY2027E | $6.66 | +10.0% | 21 |
| FY2028E | $7.27 | +9.1% | 15 |
| FY2029E | $7.99 | +10.0% | 11 |
| FY2030E | $8.77 | +9.7% | 7 |
5Y Forward EPS CAGR: 15.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $13.6B | $20.87 | — |
| FY2022 | $-1.3B | $-2.28 | -110.9% |
| FY2023 | $2.8B | $5.19 | — |
| FY2024 | $2.0B | $3.94 | -24.1% |
| FY2025 | $2.0B | $4.34 | +10.2% |
4Y Historical EPS CAGR: -32.5%
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.