Using the PEG framework with analyst consensus forward EPS growth of 9.3% plus 1.9% dividend yield, Fastenal Company has a fair value of $11.45 based on NTM EPS (FY2026) of $1.23. The current PEG ratio is 3.97.
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 | 7.4% |
| Dividend Yield | +1.9% |
| Adjusted Growth (clamped 8–25%) | 9.3% |
| Fair P/E | 9.3x |
| NTM EPS (FY2026) | $1.23 |
| Fair Value | $11.45 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.09 | — | — |
| FY2026E | $1.23 | +12.7% | 12 |
| FY2027E | $1.35 | +9.9% | 12 |
| FY2028E | $1.42 | +5.4% | 7 |
| FY2029E | $1.45 | +2.0% | 3 |
4Y Forward EPS CAGR: 7.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $925.0M | $0.80 | — |
| FY2022 | $1.1B | $0.94 | +17.5% |
| FY2023 | $1.2B | $1.01 | +7.4% |
| FY2024 | $1.2B | $1.00 | -1.0% |
| FY2025 | $1.3B | $1.09 | +9.0% |
4Y Historical EPS CAGR: 8.0%
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.