Using the PEG framework with analyst consensus forward EPS growth of 12.0% plus 0.2% dividend yield, GE HealthCare Technologies Inc. has a fair value of $60.87 based on NTM EPS (FY2026) of $5.07. The current PEG ratio is 1.18.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.8% |
| Dividend Yield | +0.2% |
| Adjusted Growth (clamped 8–25%) | 12.0% |
| Fair P/E | 12.0x |
| NTM EPS (FY2026) | $5.07 |
| Fair Value | $60.87 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.55 | — | — |
| FY2026E | $5.07 | +11.3% | 15 |
| FY2027E | $5.60 | +10.5% | 15 |
| FY2028E | $6.23 | +11.3% | 12 |
| FY2029E | $7.11 | +14.2% | 11 |
4Y Forward EPS CAGR: 11.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.2B | $4.90 | — |
| FY2022 | $1.9B | $4.22 | -13.9% |
| FY2023 | $1.6B | $3.02 | -28.4% |
| FY2024 | $2.0B | $4.34 | +43.7% |
| FY2025 | $2.1B | $4.55 | +4.8% |
4Y Historical EPS CAGR: -1.8%
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.