Using the PEG framework with analyst consensus forward EPS growth of 20.4% plus 2.0% dividend yield, NetApp, Inc. has a fair value of $162.64 based on NTM EPS (FY2026) of $7.98. The current PEG ratio is 0.65.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 18.4% |
| Dividend Yield | +2.0% |
| Adjusted Growth (clamped 8–25%) | 20.4% |
| Fair P/E | 20.4x |
| NTM EPS (FY2026) | $7.98 |
| Fair Value | $162.64 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.67 | — | — |
| FY2026E | $7.98 | +40.7% | 14 |
| FY2027E | $8.53 | +6.9% | 15 |
| FY2028E | $9.40 | +10.2% | 12 |
3Y Forward EPS CAGR: 18.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $730.0M | $3.23 | — |
| FY2022 | $937.0M | $4.09 | +26.6% |
| FY2023 | $1.3B | $5.79 | +41.6% |
| FY2024 | $986.0M | $4.63 | -20.0% |
| FY2025 | $1.2B | $5.67 | +22.5% |
4Y Historical EPS CAGR: 15.1%
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.