Using the PEG framework with analyst consensus forward EPS growth of 8.2% plus 5.0% dividend yield, Extra Space Storage Inc. has a fair value of $38.17 based on NTM EPS (FY2026) of $4.68. The current PEG ratio is 3.42.
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 | 3.2% |
| Dividend Yield | +5.0% |
| Adjusted Growth (clamped 8–25%) | 8.2% |
| Fair P/E | 8.2x |
| NTM EPS (FY2026) | $4.68 |
| Fair Value | $38.17 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.59 | — | — |
| FY2026E | $4.68 | +1.9% | 6 |
| FY2027E | $4.89 | +4.4% | 6 |
2Y Forward EPS CAGR: 3.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $827.6M | $6.19 | — |
| FY2022 | $860.7M | $6.41 | +3.6% |
| FY2023 | $803.2M | $4.74 | -26.1% |
| FY2024 | $854.7M | $4.03 | -15.0% |
| FY2025 | $974.0M | $4.59 | +13.9% |
4Y Historical EPS CAGR: -7.2%
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.