Using the PEG framework with analyst consensus forward EPS growth of 10.2% plus 1.5% dividend yield, Garmin Ltd. has a fair value of $95.91 based on NTM EPS (FY2026) of $9.39. The current PEG ratio is 2.47.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.8% |
| Dividend Yield | +1.5% |
| Adjusted Growth (clamped 8–25%) | 10.2% |
| Fair P/E | 10.2x |
| NTM EPS (FY2026) | $9.39 |
| Fair Value | $95.91 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.59 | — | — |
| FY2026E | $9.39 | +9.3% | 6 |
| FY2027E | $10.16 | +8.2% | 6 |
2Y Forward EPS CAGR: 8.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.1B | $5.61 | — |
| FY2022 | $973.6M | $5.04 | -10.2% |
| FY2023 | $1.3B | $6.71 | +33.1% |
| FY2024 | $1.4B | $7.30 | +8.8% |
| FY2025 | $1.7B | $8.59 | +17.7% |
4Y Historical EPS CAGR: 11.2%
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.