Using the PEG framework with analyst consensus forward EPS growth of 22.7%, Realty Income Corporation has a fair value of $37.04 based on NTM EPS (FY2026) of $1.63. The current PEG ratio is 1.63.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 22.7% |
| Adjusted Growth (clamped 8–25%) | 22.7% |
| Fair P/E | 22.7x |
| NTM EPS (FY2026) | $1.63 |
| Fair Value | $37.04 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.17 | — | — |
| FY2026E | $1.63 | +39.6% | 5 |
| FY2027E | $1.76 | +7.8% | 7 |
2Y Forward EPS CAGR: 22.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $359.5M | $0.87 | — |
| FY2022 | $869.4M | $1.42 | +63.2% |
| FY2023 | $872.3M | $1.26 | -11.3% |
| FY2024 | $860.8M | $0.98 | -22.2% |
| FY2025 | $1.1B | $1.17 | +19.4% |
4Y Historical EPS CAGR: 7.7%
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.