Using the PEG framework with analyst consensus forward EPS growth of 8.5%, O'Reilly Automotive, Inc. has a fair value of $27.34 based on NTM EPS (FY2026) of $3.23. The current PEG ratio is 3.39.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.5% |
| Adjusted Growth (clamped 8–25%) | 8.5% |
| Fair P/E | 8.5x |
| NTM EPS (FY2026) | $3.23 |
| Fair Value | $27.34 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.97 | — | — |
| FY2026E | $3.23 | +8.7% | 18 |
| FY2027E | $3.57 | +10.7% | 19 |
| FY2028E | $3.92 | +9.8% | 10 |
| FY2029E | $4.09 | +4.4% | 5 |
| FY2030E | $4.46 | +8.9% | 5 |
5Y Forward EPS CAGR: 8.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.2B | $2.18 | — |
| FY2022 | $2.2B | $2.34 | +7.3% |
| FY2023 | $2.3B | $2.69 | +15.0% |
| FY2024 | $2.4B | $2.71 | +0.7% |
| FY2025 | $2.5B | $2.97 | +9.6% |
4Y Historical EPS CAGR: 8.0%
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.