Using the PEG framework with historical EPS growth of 16.3% plus 0.4% dividend yield, Texas Pacific Land Corporation has a fair value of $113.30 based on TTM EPS (FY2025) of $6.97. The current PEG ratio is 4.63.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateHistorical | 15.8% |
| Dividend Yield | +0.4% |
| Adjusted Growth (clamped 8–25%) | 16.3% |
| Fair P/E | 16.3x |
| TTM EPS (FY2025) | $6.97 |
| Fair Value | $113.30 |
No analyst estimates available.
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $270.0M | $3.87 | — |
| FY2022 | $446.4M | $6.42 | +65.9% |
| FY2023 | $405.6M | $5.86 | -8.7% |
| FY2024 | $454.0M | $6.57 | +12.1% |
| FY2025 | $481.4M | $6.97 | +6.0% |
4Y Historical EPS CAGR: 15.8%
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.