PE ratio relative to earnings growth — is the valuation justified?
1.71
PEG Ratio
1.71
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$170.25
TTM EPS
$8.34
P/E Ratio
20.41
Growth Rate
12.0%
5-Year EPS CAGR
Sector
Industrials
Industrial - Machinery
Calculated
8/18/2026
12:46:06 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.42
25th Percentile
0.77
75th Percentile
1.57
ALG PEG (1.71) vs Industry Median (1.42): 20% premium
Symbol
Company
PEG
P/E
Growth
vs ALG
SXI
Standex International Corporation
0.77
18.3
23.7%
-55%
AGCO
AGCO Corporation
1.42
16.1
11.4%
-17%
LNN
Lindsay Corporation
1.57
21.7
13.8%
-8%
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.
