Using the PEG framework with analyst consensus forward EPS growth of 9.9% plus 1.1% dividend yield, Republic Services, Inc. has a fair value of $71.58 based on NTM EPS (FY2026) of $7.25. The current PEG ratio is 3.04.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.8% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%) | 9.9% |
| Fair P/E | 9.9x |
| NTM EPS (FY2026) | $7.25 |
| Fair Value | $71.58 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.85 | — | — |
| FY2026E | $7.25 | +5.8% | 19 |
| FY2027E | $8.05 | +11.1% | 19 |
| FY2028E | $8.82 | +9.6% | 13 |
| FY2029E | $9.76 | +10.6% | 12 |
| FY2030E | $10.44 | +7.0% | 6 |
5Y Forward EPS CAGR: 8.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.3B | $4.04 | — |
| FY2022 | $1.5B | $4.69 | +16.1% |
| FY2023 | $1.7B | $5.47 | +16.6% |
| FY2024 | $2.0B | $6.49 | +18.6% |
| FY2025 | $2.1B | $6.85 | +5.5% |
4Y Historical EPS CAGR: 14.1%
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.