Using the PEG framework with analyst consensus forward EPS growth of 11.4% plus 1.3% dividend yield, Rollins, Inc. has a fair value of $14.01 based on NTM EPS (FY2026) of $1.23. The current PEG ratio is 3.78.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.1% |
| Dividend Yield | +1.3% |
| Adjusted Growth (clamped 8–25%) | 11.4% |
| Fair P/E | 11.4x |
| NTM EPS (FY2026) | $1.23 |
| Fair Value | $14.01 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.09 | — | — |
| FY2026E | $1.23 | +12.5% | 12 |
| FY2027E | $1.37 | +11.8% | 12 |
| FY2028E | $1.52 | +10.6% | 9 |
| FY2029E | $1.60 | +5.7% | 4 |
| FY2030E | $1.77 | +10.1% | 4 |
5Y Forward EPS CAGR: 10.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $356.6M | $0.72 | — |
| FY2022 | $368.6M | $0.75 | +4.2% |
| FY2023 | $435.0M | $0.89 | +18.7% |
| FY2024 | $466.4M | $0.96 | +7.9% |
| FY2025 | $526.7M | $1.09 | +13.5% |
4Y Historical EPS CAGR: 10.9%
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.