Using the PEG framework with analyst consensus forward EPS growth of 23.1% plus 1.0% dividend yield, Stryker Corporation has a fair value of $347.38 based on NTM EPS (FY2026) of $15.01. The current PEG ratio is 0.96.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 22.1% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%) | 23.1% |
| Fair P/E | 23.1x |
| NTM EPS (FY2026) | $15.01 |
| Fair Value | $347.38 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.40 | — | — |
| FY2026E | $15.01 | +78.7% | 22 |
| FY2027E | $16.78 | +11.8% | 21 |
| FY2028E | $18.72 | +11.5% | 13 |
| FY2029E | $21.03 | +12.4% | 12 |
| FY2030E | $22.82 | +8.5% | 6 |
5Y Forward EPS CAGR: 22.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $2.0B | $5.22 | — |
| FY2022 | $2.4B | $6.17 | +18.2% |
| FY2023 | $3.2B | $8.25 | +33.7% |
| FY2024 | $3.0B | $7.76 | -5.9% |
| FY2025 | $3.2B | $8.40 | +8.2% |
4Y Historical EPS CAGR: 12.6%
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.