Using the PEG framework with analyst consensus forward EPS growth of 22.6% plus 0.0% dividend yield, NVIDIA Corporation has a fair value of $187.46 based on NTM EPS (FY2027) of $8.28. The current PEG ratio is 0.95.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 22.6% |
| Dividend Yield | +0.0% |
| Adjusted Growth (clamped 8–25%) | 22.6% |
| Fair P/E | 22.6x |
| NTM EPS (FY2027) | $8.28 |
| Fair Value | $187.46 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2026 (actual) | $4.90 | — | — |
| FY2027E | $8.28 | +69.0% | 38 |
| FY2028E | $11.12 | +34.3% | 39 |
| FY2029E | $12.77 | +14.9% | 18 |
| FY2030E | $12.29 | -3.7% | 13 |
| FY2031E | $13.58 | +10.5% | 8 |
5Y Forward EPS CAGR: 22.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2022 | $9.8B | $0.38 | — |
| FY2023 | $4.4B | $0.17 | -55.3% |
| FY2024 | $29.8B | $1.19 | +600.0% |
| FY2025 | $72.9B | $2.94 | +147.1% |
| FY2026 | $120.1B | $4.90 | +66.7% |
4Y Historical EPS CAGR: 89.5%
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.