Using the PEG framework with analyst consensus forward EPS growth of 9.0% plus 0.8% dividend yield, Walmart Inc. has a fair value of $26.17 based on NTM EPS (FY2027) of $2.92. The current PEG ratio is 4.67.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.2% |
| Dividend Yield | +0.8% |
| Adjusted Growth (clamped 8–25%) | 9.0% |
| Fair P/E | 9.0x |
| NTM EPS (FY2027) | $2.92 |
| Fair Value | $26.17 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2026 (actual) | $2.73 | — | — |
| FY2027E | $2.92 | +7.0% | 16 |
| FY2028E | $3.28 | +12.3% | 15 |
| FY2029E | $3.73 | +13.7% | 6 |
| FY2030E | $3.74 | +0.1% | 3 |
| FY2031E | $4.05 | +8.3% | 4 |
5Y Forward EPS CAGR: 8.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2022 | $13.7B | $1.62 | — |
| FY2023 | $11.7B | $1.42 | -12.3% |
| FY2024 | $15.5B | $1.91 | +34.5% |
| FY2025 | $19.4B | $2.41 | +26.2% |
| FY2026 | $21.9B | $2.73 | +13.3% |
4Y Historical EPS CAGR: 13.9%
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.