Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.5% dividend yield, Monolithic Power Systems, Inc. has a fair value of $537.48 based on NTM EPS (FY2026) of $21.50. The current PEG ratio is 1.79.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 27.6% |
| Dividend Yield | +0.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $21.50 |
| Fair Value | $537.48 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $12.75 | — | — |
| FY2026E | $21.50 | +68.6% | 12 |
| FY2027E | $25.76 | +19.8% | 12 |
| FY2028E | $30.86 | +19.8% | 4 |
| FY2029E | $36.45 | +18.1% | 3 |
| FY2030E | $43.15 | +18.4% | 3 |
5Y Forward EPS CAGR: 27.6%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $242.0M | $5.05 | — |
| FY2022 | $437.7M | $9.05 | +79.2% |
| FY2023 | $427.4M | $8.76 | -3.2% |
| FY2024 | $1.8B | $36.59 | +317.7% |
| FY2025 | $615.9M | $12.75 | -65.2% |
4Y Historical EPS CAGR: 26.1%