Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.0% dividend yield, Tapestry, Inc. has a fair value of $162.42 based on NTM EPS (FY2026) of $6.50. The current PEG ratio is 0.19.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 114.0% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $6.50 |
| Fair Value | $162.42 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.82 | — | — |
| FY2026E | $6.50 | +692.3% | 15 |
| FY2027E | $7.16 | +10.3% | 14 |
| FY2028E | $8.04 | +12.2% | 10 |
3Y Forward EPS CAGR: 114.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $834.2M | $2.95 | — |
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 | $856.3M | $3.17 | +7.5% |
| FY2023 | $936.0M | $3.88 | +22.4% |
| FY2024 | $816.0M | $3.50 | -9.8% |
| FY2025 | $183.2M | $0.82 | -76.6% |
4Y Historical EPS CAGR: -27.4%