Using the PEG framework with analyst consensus forward EPS growth of 23.6% plus 2.6% dividend yield, Sempra has a fair value of $120.50 based on NTM EPS (FY2026) of $5.12. The current PEG ratio is 0.79.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 21.0% |
| Dividend Yield | +2.6% |
| Adjusted Growth (clamped 8–25%) | 23.6% |
| Fair P/E | 23.6x |
| NTM EPS (FY2026) | $5.12 |
| Fair Value | $120.50 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.75 | — | — |
| FY2026E | $5.12 | +86.1% | 9 |
| FY2027E | $5.53 | +8.1% | 9 |
| FY2028E | $5.99 | +8.4% | 10 |
| FY2029E | $6.50 | +8.5% | 5 |
| FY2030E | $7.13 | +9.7% | 5 |
5Y Forward EPS CAGR: 21.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.3B | $2.00 | — |
| FY2022 | $2.1B | $3.31 | +65.2% |
| FY2023 | $3.1B | $4.79 | +44.7% |
| FY2024 | $2.9B | $4.42 | -7.7% |
| FY2025 | $1.8B | $2.75 | -37.8% |
4Y Historical EPS CAGR: 8.2%
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.