Using the PEG framework with analyst consensus forward EPS growth of 14.6% plus 1.2% dividend yield, Pentair plc has a fair value of $77.86 based on NTM EPS (FY2026) of $5.34. The current PEG ratio is 1.11.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.4% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%) | 14.6% |
| Fair P/E | 14.6x |
| NTM EPS (FY2026) | $5.34 |
| Fair Value | $77.86 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.96 | — | — |
| FY2026E | $5.34 | +35.0% | 15 |
| FY2027E | $5.84 | +9.2% | 14 |
| FY2028E | $6.31 | +8.1% | 8 |
| FY2029E | $6.55 | +3.8% | 7 |
4Y Forward EPS CAGR: 13.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $553.0M | $3.30 | — |
| FY2022 | $480.9M | $2.90 | -12.1% |
| FY2023 | $622.7M | $3.74 | +29.0% |
| FY2024 | $625.4M | $3.74 | +0.0% |
| FY2025 | $653.8M | $3.96 | +5.9% |
4Y Historical EPS CAGR: 4.7%
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.