Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 2.2% dividend yield, Ventas, Inc. has a fair value of $19.01 based on NTM EPS (FY2026) of $0.76. The current PEG ratio is 2.31.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 44.6% |
| Dividend Yield | +2.2% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $0.76 |
| Fair Value | $19.01 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.54 | — | — |
| FY2026E | $0.76 | +40.8% | 3 |
| FY2027E | $1.13 | +48.4% | 3 |
2Y Forward EPS CAGR: 44.6%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $49.0M | $0.13 | — |
| FY2022 | $-47.4M | $-0.13 | -200.0% |
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.
| FY2023 | $-41.0M | $-0.10 | — |
| FY2024 | $81.2M | $0.19 | — |
| FY2025 | $251.4M | $0.54 | +184.2% |
4Y Historical EPS CAGR: 42.8%