Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.1% dividend yield, Zimmer Biomet Holdings, Inc. has a fair value of $209.96 based on NTM EPS (FY2026) of $8.40. The current PEG ratio is 0.40.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 25.2% |
| Dividend Yield | +1.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $8.40 |
| Fair Value | $209.96 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.55 | — | — |
| FY2026E | $8.40 | +136.6% | 20 |
| FY2027E | $9.00 | +7.1% | 20 |
| FY2028E | $9.54 | +6.0% | 13 |
| FY2029E | $10.34 | +8.4% | 12 |
| FY2030E | $10.91 | +5.5% | 6 |
5Y Forward EPS CAGR: 25.2%
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.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $401.6M | $1.91 | — |
| FY2022 | $231.4M | $1.10 | -42.4% |
| FY2023 | $1.0B | $4.88 | +343.6% |
| FY2024 | $903.8M | $4.43 | -9.2% |
| FY2025 | $705.2M | $3.55 | -19.9% |
4Y Historical EPS CAGR: 16.8%