PE ratio relative to earnings growth — is the valuation justified?
2.78
PEG Ratio
2.78
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$89.21
TTM EPS
$4.35
P/E Ratio
20.51
Growth Rate
7.4%
5-Year EPS CAGR
Sector
Consumer Defensive
Discount Stores
Calculated
8/18/2026
9:43:27 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.83
25th Percentile
1.76
75th Percentile
11.04
BJ PEG (2.78) vs Industry Median (1.83): 52% premium
Symbol
Company
PEG
P/E
Growth
vs BJ
WSM
Williams-Sonoma, Inc.
1.76
26.9
15.3%
-37%
DKS
DICK'S Sporting Goods, Inc.
1.83
18.7
10.2%
-34%
DLTR
Dollar Tree, Inc.
11.04
20.2
1.8%
+297%
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.
