PE ratio relative to earnings growth — is the valuation justified?
17.40
PEG Ratio
PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions
PEG ratio is generally unreliable for Financial Services companies
17.40
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$36.31
TTM EPS
$3.38
P/E Ratio
10.74
Growth Rate
0.6%
5-Year EPS CAGR
Sector
Financial Services
Asset Management
Calculated
8/18/2026
12:43:50 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
1.95
25th Percentile
1.45
75th Percentile
2.46
AB PEG (17.40) vs Industry Median (1.95): 790% premium
Symbol
Company
PEG
P/E
Growth
vs AB
ARCC
Ares Capital Corporation
1.45
15.0
10.3%
-92%
APAM
Artisan Partners Asset Management Inc.
2.46
8.7
3.6%
-86%
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.
