Using the PEG framework with analyst consensus forward EPS growth of 8.5% plus 4.5% dividend yield, Novo Nordisk A/S has a fair value of $25.52 based on NTM EPS (FY2026) of $3.02. The current PEG ratio is 1.43.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 4.0% |
| Dividend Yield | +4.5% |
| Adjusted Growth (clamped 8–25%) | 8.5% |
| Fair P/E | 8.5x |
| NTM EPS (FY2026) | $3.02 |
| Fair Value | $25.52 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.34 | — | — |
| FY2026E | $3.02 | -9.6% | 14 |
| FY2027E | $3.10 | +2.8% | 15 |
| FY2028E | $3.37 | +8.7% | 6 |
| FY2029E | $3.74 | +10.8% | 11 |
| FY2030E | $4.06 | +8.7% | 7 |
5Y Forward EPS CAGR: 4.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $6.9B | $1.50 | — |
| FY2022 | $8.1B | $1.77 | +17.8% |
| FY2023 | $12.1B | $2.70 | +52.4% |
| FY2024 | $14.6B | $3.28 | +21.5% |
| FY2025 | $14.3B | $3.34 | +1.8% |
4Y Historical EPS CAGR: 22.1%
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.