What is A. O. Smith Corporation (AOS)'s PEG ratio?

A. O. Smith Corporation (AOS) has a PEG ratio of 1.40 (Fairly Valued), based on a PE ratio of 17.5 and expected EPS growth of 12.5% (5-Year EPS CAGR).

Is AOS undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 1.40, A. O. Smith Corporation (AOS) screens as "Fairly Valued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/AOS.

A. O. Smith Corporation (AOS) PEG Ratio

Fairly Valued

PE ratio relative to earnings growth — is the valuation justified?

1.40

PEG Ratio

1.40

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$62.72

TTM EPS

$3.59

P/E Ratio

17.47

Growth Rate

12.5%

5-Year EPS CAGR

Sector

Industrials

Industrial - Machinery

Calculated

8/18/2026

1:34:57 PM

Peer Comparison

Sample Size

12 peers

Industry Median PEG

2.36

25th Percentile

1.89

75th Percentile

3.53

AOS PEG (1.40) vs Industry Median (2.36): 41% discount

Symbol	Company	PEG	P/E	Growth	vs AOS
FLS	Flowserve Corporation	1.17	25.4	21.6%	-16%
XYL	Xylem Inc.	1.23	28.0	22.8%	-12%
PNR	Pentair plc	1.46	19.3	13.2%	+5%
ETN	Eaton Corporation plc	1.89	46.3	24.5%	+36%
PH	Parker-Hannifin Corporation	2.26	37.0	16.4%	+62%

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.

A. O. Smith Corporation (AOS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on AOS

Compare with peers

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A. O. Smith Corporation (AOS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on AOS

Compare with peers

Explore