Using the PEG framework with analyst consensus forward EPS growth of 14.1%, First Solar, Inc. has a fair value of $254.91 based on NTM EPS (FY2026) of $18.10. The current PEG ratio is 0.74.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.1% |
| Adjusted Growth (clamped 8–25%) | 14.1% |
| Fair P/E | 14.1x |
| NTM EPS (FY2026) | $18.10 |
| Fair Value | $254.91 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $14.21 | — | — |
| FY2026E | $18.10 | +27.4% | 23 |
| FY2027E | $23.92 | +32.1% | 24 |
| FY2028E | $30.04 | +25.6% | 22 |
| FY2029E | $35.35 | +17.7% | 15 |
| FY2030E | $27.46 | -22.3% | 11 |
5Y Forward EPS CAGR: 14.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $468.7M | $4.38 | — |
| FY2022 | $-44.2M | $-0.41 | -109.4% |
| FY2023 | $830.8M | $7.74 | — |
| FY2024 | $1.3B | $12.02 | +55.3% |
| FY2025 | $1.5B | $14.21 | +18.2% |
4Y Historical EPS CAGR: 34.2%
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.