PE ratio relative to earnings growth — is the valuation justified?
11.98
PEG Ratio
11.98
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$84.69
TTM EPS
$0.91
P/E Ratio
93.07
Growth Rate
7.8%
5-Year EPS CAGR
Sector
Basic Materials
Construction Materials
Calculated
8/18/2026
9:43:33 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
10.82
25th Percentile
1.15
75th Percentile
12.63
BLDR PEG (11.98) vs Industry Median (10.82): 11% premium
Symbol
Company
PEG
P/E
Growth
vs BLDR
BLD
TopBuild Corp.
1.15
22.6
19.6%
-90%
TREX
Trex Company, Inc.
10.82
34.7
3.2%
-10%
AAON
AAON, Inc.
12.63
69.4
5.5%
+5%
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.
