PE ratio relative to earnings growth — is the valuation justified?
4.09
PEG Ratio
4.09
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$104.58
TTM EPS
$3.11
P/E Ratio
33.63
Growth Rate
8.2%
5-Year EPS CAGR
Sector
Healthcare
Medical - Devices
Calculated
7/28/2026
7:39:10 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
2.46
25th Percentile
1.55
75th Percentile
3.37
ABT PEG (4.09) vs Industry Median (2.46): 67% premium
Symbol
Company
PEG
P/E
Growth
vs ABT
LLY
Eli Lilly and Company
1.55
42.6
27.5%
-62%
BMY
Bristol-Myers Squibb Company
3.37
17.6
5.2%
-18%
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.
