Using the PEG framework with analyst consensus forward EPS growth of 15.3% plus 2.5% dividend yield, Sysco Corporation has a fair value of $70.31 based on NTM EPS (FY2026) of $4.59. The current PEG ratio is 1.18.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.8% |
| Dividend Yield | +2.5% |
| Adjusted Growth (clamped 8–25%) | 15.3% |
| Fair P/E | 15.3x |
| NTM EPS (FY2026) | $4.59 |
| Fair Value | $70.31 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.73 | — | — |
| FY2026E | $4.59 | +23.1% | 12 |
| FY2027E | $5.06 | +10.2% | 12 |
| FY2028E | $5.49 | +8.5% | 11 |
| FY2029E | $6.04 | +9.9% | 6 |
4Y Forward EPS CAGR: 12.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $524.2M | $1.02 | — |
| FY2022 | $1.4B | $2.64 | +158.8% |
| FY2023 | $1.8B | $3.47 | +31.4% |
| FY2024 | $2.0B | $3.89 | +12.1% |
| FY2025 | $1.8B | $3.73 | -4.1% |
4Y Historical EPS CAGR: 38.3%
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.