Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Palo Alto Networks, Inc. has a fair value of $92.37 based on NTM EPS (FY2026) of $3.69. The current PEG ratio is 1.31.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 32.3% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $3.69 |
| Fair Value | $92.37 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $1.60 | — | — |
| FY2026E | $3.69 | +130.9% | 36 |
| FY2027E | $3.98 | +7.8% | 36 |
| FY2028E | $4.62 | +16.0% | 28 |
| FY2029E | $4.90 | +6.0% | 27 |
4Y Forward EPS CAGR: 32.3%
| 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 | $-498.9M | $-0.86 | — |
| FY2022 | $-267.0M | $-0.45 | — |
| FY2023 | $439.7M | $0.64 | — |
| FY2024 | $2.6B | $3.64 | +468.8% |
| FY2025 | $1.1B | $1.60 | -56.0% |
4Y Historical EPS CAGR: 206.4%