Using the PEG framework with analyst consensus forward EPS growth of 14.0% plus 0.8% dividend yield, Visa Inc. has a fair value of $179.55 based on NTM EPS (FY2026) of $12.86. The current PEG ratio is 1.70.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 13.2% |
| Dividend Yield | +0.8% |
| Adjusted Growth (clamped 8–25%) | 14.0% |
| Fair P/E | 14.0x |
| NTM EPS (FY2026) | $12.86 |
| Fair Value | $179.55 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $10.20 | — | — |
| FY2026E | $12.86 | +26.1% | 26 |
| FY2027E | $14.55 | +13.2% | 26 |
| FY2028E | $16.35 | +12.4% | 21 |
| FY2029E | $18.72 | +14.5% | 16 |
| FY2030E | $18.94 | +1.2% | 20 |
5Y Forward EPS CAGR: 13.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $12.3B | $5.63 | — |
| FY2022 | $15.0B | $7.00 | +24.3% |
| FY2023 | $17.3B | $8.28 | +18.3% |
| FY2024 | $19.7B | $9.73 | +17.5% |
| FY2025 | $20.1B | $10.20 | +4.8% |
4Y Historical EPS CAGR: 16.0%
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.