Using the PEG framework with analyst consensus forward EPS growth of 18.8% plus 0.0% dividend yield, Western Digital Corporation has a fair value of $166.94 based on NTM EPS (FY2026) of $8.88. The current PEG ratio is 1.65.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 18.7% |
| Dividend Yield | +0.0% |
| Adjusted Growth (clamped 8–25%) | 18.8% |
| Fair P/E | 18.8x |
| NTM EPS (FY2026) | $8.88 |
| Fair Value | $166.94 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.12 | — | — |
| FY2026E | $8.88 | +73.5% | 17 |
| FY2027E | $13.28 | +49.5% | 16 |
| FY2028E | $16.65 | +25.4% | 13 |
| FY2029E | $16.59 | -0.4% | 6 |
| FY2030E | $12.09 | -27.1% | 9 |
5Y Forward EPS CAGR: 18.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $821.0M | $2.66 | — |
| FY2022 | $1.5B | $4.75 | +78.6% |
| FY2023 | $-1.7B | $-5.37 | -213.1% |
| FY2024 | $-798.0M | $-2.61 | — |
| FY2025 | $1.9B | $5.12 | — |
4Y Historical EPS CAGR: 17.8%
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.