PE ratio relative to earnings growth — is the valuation justified?
0.57
PEG Ratio
0.57
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$64.95
TTM EPS
$7.07
P/E Ratio
9.19
Growth Rate
16.2%
5-Year EPS CAGR
Sector
Industrials
Rental & Leasing Services
Calculated
8/28/2026
12:49:20 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
2.05
25th Percentile
0.89
75th Percentile
3.22
AL PEG (0.57) vs Industry Median (2.05): 72% discount
Symbol
Company
PEG
P/E
Growth
vs AL
ALSN
Allison Transmission Holdings Inc
0.89
20.5
23.1%
+57%
AME
AMETEK INC/
3.22
35.6
11.1%
+469%
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.
