Using the PEG framework with analyst consensus forward EPS growth of 23.0% plus 3.5% dividend yield, Keurig Dr Pepper Inc. has a fair value of $52.05 based on NTM EPS (FY2026) of $2.26. The current PEG ratio is 0.51.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 19.5% |
| Dividend Yield | +3.5% |
| Adjusted Growth (clamped 8–25%) | 23.0% |
| Fair P/E | 23.0x |
| NTM EPS (FY2026) | $2.26 |
| Fair Value | $52.05 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.53 | — | — |
| FY2026E | $2.26 | +47.9% | 10 |
| FY2027E | $2.49 | +9.9% | 10 |
| FY2028E | $2.61 | +5.1% | 6 |
3Y Forward EPS CAGR: 19.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.1B | $1.50 | — |
| FY2022 | $1.4B | $1.01 | -32.7% |
| FY2023 | $2.2B | $1.55 | +53.5% |
| FY2024 | $1.4B | $1.05 | -32.3% |
| FY2025 | $2.1B | $1.53 | +45.7% |
4Y Historical EPS CAGR: 0.5%
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.