Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.1% dividend yield, Oracle Corporation has a fair value of $186.95 based on NTM EPS (FY2026) of $7.48. The current PEG ratio is 0.51.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 36.5% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $7.48 |
| Fair Value | $186.95 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.34 | — | — |
| FY2026E | $7.48 | +72.3% | 30 |
| FY2027E | $7.98 | +6.8% | 28 |
| FY2028E | $10.78 | +35.0% | 34 |
| FY2029E | $15.67 | +45.3% | 17 |
| FY2030E | $20.53 | +31.0% | 17 |
5Y Forward EPS CAGR: 36.5%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $13.7B | $4.55 | — |
| FY2022 | $6.7B | $2.41 | -47.0% |
| FY2023 | $8.5B | $3.07 | +27.4% |
| FY2024 | $10.5B | $3.71 | +20.8% |
| FY2025 | $12.4B | $4.34 | +17.0% |
4Y Historical EPS CAGR: -1.2%