Using the PEG framework with analyst consensus forward EPS growth of 8.0%, NVR, Inc. has a fair value of $3,219.75 based on NTM EPS (FY2026) of $402.47. The current PEG ratio is 5.05.
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 | 3.2% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $402.47 |
| Fair Value | $3,219.75 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $436.55 | — | — |
| FY2026E | $402.47 | -7.8% | 3 |
| FY2027E | $465.12 | +15.6% | 3 |
2Y Forward EPS CAGR: 3.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.2B | $320.48 | — |
| FY2022 | $1.7B | $491.82 | +53.5% |
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.
| FY2023 | $1.6B | $463.31 | -5.8% |
| FY2024 | $1.7B | $506.69 | +9.4% |
| FY2025 | $1.3B | $436.55 | -13.8% |
4Y Historical EPS CAGR: 8.0%