Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.0% dividend yield, STERIS plc has a fair value of $254.93 based on NTM EPS (FY2026) of $10.20. The current PEG ratio is 0.83.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 25.5% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $10.20 |
| Fair Value | $254.93 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.20 | — | — |
| FY2026E | $10.20 | +64.5% | 7 |
| FY2027E | $11.10 | +8.9% | 7 |
| FY2028E | $12.26 | +10.4% | 6 |
3Y Forward EPS CAGR: 25.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $397.4M | $4.63 | — |
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.
| FY2022 | $243.9M | $2.48 | -46.4% |
| FY2023 | $107.0M | $1.07 | -56.9% |
| FY2024 | $378.2M | $3.81 | +256.1% |
| FY2025 | $614.6M | $6.20 | +62.7% |
4Y Historical EPS CAGR: 7.6%