PE ratio relative to earnings growth — is the valuation justified?
0.62
PEG Ratio
0.62
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$111.36
TTM EPS
$4.86
P/E Ratio
22.91
Growth Rate
37.0%
5-Year EPS CAGR
Sector
Industrials
Aerospace & Defense
Calculated
8/18/2026
12:44:40 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
2.20
25th Percentile
1.76
75th Percentile
4.05
AIR PEG (0.62) vs Industry Median (2.20): 72% discount
Symbol
Company
PEG
P/E
Growth
vs AIR
HXL
Hexcel Corporation
1.76
51.8
29.4%
+185%
CW
Curtiss-Wright Corporation
2.20
47.9
21.8%
+255%
HEI
HEICO Corporation
4.05
66.3
16.4%
+555%
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.
