Using the PEG framework with analyst consensus forward EPS growth of 8.7% plus 2.3% dividend yield, Lennar Corporation has a fair value of $54.10 based on NTM EPS (FY2026) of $6.25. The current PEG ratio is 1.68.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.4% |
| Dividend Yield | +2.3% |
| Adjusted Growth (clamped 8–25%) | 8.7% |
| Fair P/E | 8.7x |
| NTM EPS (FY2026) | $6.25 |
| Fair Value | $54.10 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.98 | — | — |
| FY2026E | $6.25 | -21.7% | 7 |
| FY2027E | $7.69 | +23.2% | 7 |
| FY2028E | $9.61 | +25.0% | 5 |
3Y Forward EPS CAGR: 6.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $4.4B | $14.27 | — |
| FY2022 | $4.6B | $15.72 | +10.2% |
| FY2023 | $3.9B | $13.73 | -12.7% |
| FY2024 | $3.9B | $14.31 | +4.2% |
| FY2025 | $2.1B | $7.98 | -44.2% |
4Y Historical EPS CAGR: -13.5%
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.