Using the PEG framework with analyst consensus forward EPS growth of 16.9% plus 1.2% dividend yield, Nordson Corporation has a fair value of $193.50 based on NTM EPS (FY2026) of $11.45. The current PEG ratio is 1.37.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.7% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%) | 16.9% |
| Fair P/E | 16.9x |
| NTM EPS (FY2026) | $11.45 |
| Fair Value | $193.50 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.51 | — | — |
| FY2026E | $11.45 | +34.5% | 7 |
| FY2027E | $12.36 | +8.0% | 7 |
| FY2028E | $13.18 | +6.7% | 5 |
3Y Forward EPS CAGR: 15.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $454.4M | $7.74 | — |
| FY2022 | $513.1M | $8.81 | +13.8% |
| FY2023 | $487.5M | $8.46 | -4.0% |
| FY2024 | $467.3M | $8.11 | -4.1% |
| FY2025 | $484.5M | $8.51 | +4.9% |
4Y Historical EPS CAGR: 2.4%
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.