Using the PEG framework with analyst consensus forward EPS growth of 19.0% plus 1.1% dividend yield, Labcorp Holdings Inc. has a fair value of $338.48 based on NTM EPS (FY2026) of $17.86. The current PEG ratio is 0.79.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 17.9% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%) | 19.0% |
| Fair P/E | 19.0x |
| NTM EPS (FY2026) | $17.86 |
| Fair Value | $338.48 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $10.46 | — | — |
| FY2026E | $17.86 | +70.8% | 14 |
| FY2027E | $19.33 | +8.2% | 13 |
| FY2028E | $21.07 | +9.0% | 9 |
| FY2029E | $23.23 | +10.2% | 4 |
| FY2030E | $23.80 | +2.5% | 4 |
5Y Forward EPS CAGR: 17.9%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.4B | $24.38 | — |
| FY2022 | $1.3B | $13.96 | -42.7% |
| FY2023 | $418.0M | $4.77 | -65.8% |
| FY2024 | $746.0M | $8.84 | +85.3% |
| FY2025 | $876.5M | $10.46 | +18.3% |
4Y Historical EPS CAGR: -19.1%
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.