PE ratio relative to earnings growth — is the valuation justified?
0.59
PEG Ratio
0.59
Growth Rate Source
Limited Data Quality3-Year EPS CAGR
Current Price
$16.66
TTM EPS
$1.62
P/E Ratio
10.28
Growth Rate
17.5%
3-Year EPS CAGR
Sector
Consumer Cyclical
Apparel - Retail
Calculated
8/18/2026
1:02:00 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.04
25th Percentile
0.02
75th Percentile
0.06
AEO PEG (0.59) vs Industry Median (0.04): 1439% premium
Symbol
Company
PEG
P/E
Growth
vs AEO
ANF
Abercrombie & Fitch Co.
0.02
7.5
463.0%
-97%
URBN
Urban Outfitters, Inc.
0.06
14.0
232.9%
-90%
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.
