Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 0.9% dividend yield, Salesforce, Inc. has a fair value of $330.11 based on NTM EPS (FY2027) of $13.20. The current PEG ratio is 0.52.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 25.9% |
| Dividend Yield | +0.9% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2027) | $13.20 |
| Fair Value | $330.11 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2026 (actual) | $7.80 | — | — |
| FY2027E | $13.20 | +69.3% | 41 |
| FY2028E | $14.89 | +12.7% | 38 |
| FY2029E | $17.26 | +15.9% | 19 |
| FY2030E | $19.62 | +13.7% | 18 |
4Y Forward EPS CAGR: 25.9%
| 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.
| FY2022 | $1.4B | $1.48 | — |
| FY2023 | $208.0M | $0.21 | -85.8% |
| FY2024 | $4.1B | $4.20 | +1900.0% |
| FY2025 | $6.2B | $6.36 | +51.4% |
| FY2026 | $7.5B | $7.80 | +22.6% |
4Y Historical EPS CAGR: 51.5%