Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 2.5% dividend yield, Occidental Petroleum Corporation has a fair value of $52.33 based on NTM EPS (FY2026) of $2.09. The current PEG ratio is 1.19.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 23.3% |
| Dividend Yield | +2.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $2.09 |
| Fair Value | $52.33 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.61 | — | — |
| FY2026E | $2.09 | +30.0% | 9 |
| FY2027E | $2.26 | +7.9% | 8 |
| FY2028E | $3.06 | +35.5% | 4 |
| FY2029E | $3.26 | +6.6% | 3 |
| FY2030E | $4.59 | +40.8% | 3 |
5Y Forward EPS CAGR: 23.3%
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 | $2.3B | $1.58 | — |
| FY2022 | $13.2B | $12.40 | +684.8% |
| FY2023 | $4.7B | $3.90 | -68.5% |
| FY2024 | $3.0B | $2.44 | -37.4% |
| FY2025 | $2.4B | $1.61 | -34.0% |
4Y Historical EPS CAGR: 0.5%