Using the PEG framework with analyst consensus forward EPS growth of 16.6% plus 6.2% dividend yield, Pfizer Inc. has a fair value of $49.08 based on NTM EPS (FY2026) of $2.96. The current PEG ratio is 0.56.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.4% |
| Dividend Yield | +6.2% |
| Adjusted Growth (clamped 8–25%) | 16.6% |
| Fair P/E | 16.6x |
| NTM EPS (FY2026) | $2.96 |
| Fair Value | $49.08 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.36 | — | — |
| FY2026E | $2.96 | +117.3% | 19 |
| FY2027E | $2.82 | -4.4% | 19 |
| FY2028E | $2.45 | -13.4% | 20 |
| FY2029E | $2.19 | -10.7% | 11 |
| FY2030E | $2.23 | +1.9% | 11 |
5Y Forward EPS CAGR: 10.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $22.1B | $3.88 | — |
| FY2022 | $31.4B | $5.47 | +41.0% |
| FY2023 | $2.1B | $0.37 | -93.2% |
| FY2024 | $8.0B | $1.41 | +279.8% |
| FY2025 | $7.8B | $1.36 | -3.5% |
4Y Historical EPS CAGR: -23.1%
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.