Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 3.8% dividend yield, Genuine Parts Company has a fair value of $195.37 based on NTM EPS (FY2026) of $7.81. The current PEG ratio is 0.04.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 325.6% |
| Dividend Yield | +3.8% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $7.81 |
| Fair Value | $195.37 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.47 | — | — |
| FY2026E | $7.81 | +1562.7% | 7 |
| FY2027E | $8.51 | +8.9% | 7 |
2Y Forward EPS CAGR: 325.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $898.8M | $6.23 | — |
| FY2022 | $1.2B | $8.31 | +33.4% |
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.
| FY2023 | $1.3B | $9.33 | +12.3% |
| FY2024 | $904.1M | $6.47 | -30.7% |
| FY2025 | $65.9M | $0.47 | -92.7% |
4Y Historical EPS CAGR: -47.6%