Using the PEG framework with analyst consensus forward EPS growth of 16.8% plus 5.4% dividend yield, Verizon Communications Inc. has a fair value of $82.30 based on NTM EPS (FY2026) of $4.91. The current PEG ratio is 0.62.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 11.4% |
| Dividend Yield | +5.4% |
| Adjusted Growth (clamped 8–25%) | 16.8% |
| Fair P/E | 16.8x |
| NTM EPS (FY2026) | $4.91 |
| Fair Value | $82.30 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $4.06 | — | — |
| FY2026E | $4.91 | +20.9% | 18 |
| FY2027E | $5.21 | +6.2% | 17 |
| FY2028E | $5.69 | +9.1% | 14 |
| FY2029E | $6.04 | +6.2% | 9 |
| FY2030E | $6.97 | +15.4% | 13 |
5Y Forward EPS CAGR: 11.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $22.1B | $5.32 | — |
| FY2022 | $21.3B | $5.06 | -4.9% |
| FY2023 | $11.6B | $2.75 | -45.7% |
| FY2024 | $17.5B | $4.15 | +50.9% |
| FY2025 | $17.2B | $4.06 | -2.2% |
4Y Historical EPS CAGR: -6.5%
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.