4338.HK

Potentially Overvalued

Microsoft Corporation — PEG Ratio Analysis

5.10

PEG Ratio

5.10

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$1600.00

TTM EPS

$16.80

P/E Ratio

95.24

Growth Rate

18.7%

5-Year EPS CAGR

Sector

Technology

Software - Infrastructure

Calculated

6/17/2026

9:16:27 AM

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.