Using the PEG framework with analyst consensus forward EPS growth of 20.0%, Edwards Lifesciences Corporation has a fair value of $59.41 based on NTM EPS (FY2026) of $2.97. The current PEG ratio is 1.39.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 20.0% |
| Adjusted Growth (clamped 8–25%) | 20.0% |
| Fair P/E | 20.0x |
| NTM EPS (FY2026) | $2.97 |
| Fair Value | $59.41 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.83 | — | — |
| FY2026E | $2.97 | +62.2% | 24 |
| FY2027E | $3.32 | +11.7% | 24 |
| FY2028E | $3.73 | +12.4% | 19 |
| FY2029E | $4.20 | +12.7% | 10 |
| FY2030E | $4.56 | +8.5% | 16 |
5Y Forward EPS CAGR: 20.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.5B | $2.38 | — |
| FY2022 | $1.5B | $2.44 | +2.5% |
| FY2023 | $1.4B | $2.30 | -5.7% |
| FY2024 | $4.2B | $6.97 | +203.0% |
| FY2025 | $1.1B | $1.83 | -73.7% |
4Y Historical EPS CAGR: -6.4%
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.