Using the PEG framework with analyst consensus forward EPS growth of 15.3% plus 2.4% dividend yield, Elevance Health Inc. has a fair value of $395.04 based on NTM EPS (FY2026) of $25.86. The current PEG ratio is 0.75.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.9% |
| Dividend Yield | +2.4% |
| Adjusted Growth (clamped 8–25%) | 15.3% |
| Fair P/E | 15.3x |
| NTM EPS (FY2026) | $25.86 |
| Fair Value | $395.04 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $25.12 | — | — |
| FY2026E | $25.86 | +2.9% | 15 |
| FY2027E | $29.03 | +12.3% | 14 |
| FY2028E | $34.43 | +18.6% | 6 |
| FY2029E | $41.55 | +20.7% | 5 |
| FY2030E | $46.13 | +11.0% | 3 |
5Y Forward EPS CAGR: 12.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $6.1B | $24.73 | — |
| FY2022 | $5.9B | $24.28 | -1.8% |
| FY2023 | $6.0B | $25.22 | +3.9% |
| FY2024 | $6.0B | $25.68 | +1.8% |
| FY2025 | $5.7B | $25.12 | -2.2% |
4Y Historical EPS CAGR: 0.4%
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.