Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Workday, Inc. has a fair value of $261.70 based on NTM EPS (FY2027) of $10.47. The current PEG ratio is 0.30.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 40.3% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2027) | $10.47 |
| Fair Value | $261.70 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2026 (actual) | $2.58 | — | — |
| FY2027E | $10.47 | +305.7% | 31 |
| FY2028E | $12.42 | +18.7% | 28 |
| FY2029E | $14.04 | +13.0% | 16 |
| FY2030E | $15.92 | +13.4% | 8 |
| FY2031E | $14.01 | -12.0% | 7 |
5Y Forward EPS CAGR: 40.3%
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 |
|---|
| FY2022 | $29.0M | $0.12 | — |
| FY2023 | $-367.0M | $-1.44 | -1300.0% |
| FY2024 | $1.4B | $5.21 | — |
| FY2025 | $526.0M | $1.95 | -62.6% |
| FY2026 | $693.0M | $2.58 | +32.3% |
4Y Historical EPS CAGR: 115.3%