Using the PEG framework with analyst consensus forward EPS growth of 19.7% plus 3.2% dividend yield, Medtronic plc has a fair value of $111.50 based on NTM EPS (FY2026) of $5.65. 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 | 16.6% |
| Dividend Yield | +3.2% |
| Adjusted Growth (clamped 8–25%) | 19.7% |
| Fair P/E | 19.7x |
| NTM EPS (FY2026) | $5.65 |
| Fair Value | $111.50 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.61 | — | — |
| FY2026E | $5.65 | +56.5% | 18 |
| FY2027E | $6.09 | +7.8% | 24 |
| FY2028E | $6.54 | +7.4% | 25 |
| FY2029E | $7.14 | +9.2% | 12 |
| FY2030E | $7.77 | +8.8% | 12 |
5Y Forward EPS CAGR: 16.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $3.6B | $2.66 | — |
| FY2022 | $5.0B | $3.73 | +40.2% |
| FY2023 | $3.8B | $2.82 | -24.4% |
| FY2024 | $3.7B | $2.76 | -2.1% |
| FY2025 | $4.7B | $3.61 | +30.8% |
4Y Historical EPS CAGR: 7.9%
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.