PE ratio relative to earnings growth — is the valuation justified?
0.64
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
0.64
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$45.34
TTM EPS
$4.75
P/E Ratio
9.55
Growth Rate
14.9%
5-Year EPS CAGR
Sector
Financial Services
Insurance - Property & Casualty
Calculated
8/18/2026
11:50:21 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.59
25th Percentile
0.43
75th Percentile
0.73
ACT PEG (0.64) vs Industry Median (0.59): 9% premium
Symbol
Company
PEG
P/E
Growth
vs ACT
MTG
MGIC Investment Corporation
0.43
8.3
19.3%
-33%
AGO
Assured Guaranty Ltd.
0.59
11.5
19.5%
-9%
ESNT
Essent Group Ltd.
0.73
9.0
12.4%
+14%
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.
