Using the PEG framework with analyst consensus forward EPS growth of 17.3% plus 1.6% dividend yield, FedEx Corporation has a fair value of $338.99 based on NTM EPS (FY2026) of $19.59. The current PEG ratio is 1.04.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.7% |
| Dividend Yield | +1.6% |
| Adjusted Growth (clamped 8–25%) | 17.3% |
| Fair P/E | 17.3x |
| NTM EPS (FY2026) | $19.59 |
| Fair Value | $338.99 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $16.81 | — | — |
| FY2026E | $19.59 | +16.5% | 19 |
| FY2027E | $22.35 | +14.1% | 20 |
| FY2028E | $25.82 | +15.6% | 14 |
| FY2029E | $31.75 | +23.0% | 9 |
| FY2030E | $34.86 | +9.8% | 13 |
5Y Forward EPS CAGR: 15.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $5.2B | $19.48 | — |
| FY2022 | $3.8B | $14.36 | -26.3% |
| FY2023 | $4.0B | $15.49 | +7.9% |
| FY2024 | $4.3B | $17.21 | +11.1% |
| FY2025 | $4.1B | $16.81 | -2.3% |
4Y Historical EPS CAGR: -3.6%
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.