Using the PEG framework with analyst consensus forward EPS growth of 13.5%, Monster Beverage Corporation has a fair value of $30.67 based on NTM EPS (FY2026) of $2.27. The current PEG ratio is 2.36.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.5% |
| Adjusted Growth (clamped 8–25%) | 13.5% |
| Fair P/E | 13.5x |
| NTM EPS (FY2026) | $2.27 |
| Fair Value | $30.67 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.94 | — | — |
| FY2026E | $2.27 | +16.8% | 18 |
| FY2027E | $2.55 | +12.4% | 17 |
| FY2028E | $2.86 | +12.4% | 14 |
| FY2029E | $2.77 | -3.1% | 9 |
| FY2030E | $3.66 | +32.0% | 13 |
5Y Forward EPS CAGR: 13.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.4B | $1.29 | — |
| FY2022 | $1.2B | $1.12 | -13.2% |
| FY2023 | $1.6B | $1.54 | +37.5% |
| FY2024 | $1.5B | $1.49 | -3.2% |
| FY2025 | $1.9B | $1.94 | +30.2% |
4Y Historical EPS CAGR: 10.7%
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.