Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.4% dividend yield, Welltower Inc. has a fair value of $72.53 based on NTM EPS (FY2026) of $2.90. The current PEG ratio is 1.65.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 39.5% |
| Dividend Yield | +1.4% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $2.90 |
| Fair Value | $72.53 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.39 | — | — |
| FY2026E | $2.90 | +108.7% | 6 |
| FY2027E | $3.27 | +12.6% | 6 |
| FY2028E | $3.35 | +2.4% | 4 |
| FY2029E | $5.26 | +57.2% | 3 |
4Y Forward EPS CAGR: 39.5%
| Year | Net Income | EPS | YoY |
|---|
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.
| FY2021 | $336.1M | $0.78 | — |
| FY2022 | $141.2M | $0.30 | -61.5% |
| FY2023 | $340.1M | $0.66 | +120.0% |
| FY2024 | $951.7M | $1.57 | +137.9% |
| FY2025 | $936.8M | $1.39 | -11.5% |
4Y Historical EPS CAGR: 15.5%