PE ratio relative to earnings growth — is the valuation justified?
2.52
PEG Ratio
2.52
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$72.16
TTM EPS
$0.72
P/E Ratio
100.22
Growth Rate
39.8%
5-Year EPS CAGR
Sector
Consumer Cyclical
Restaurants
Calculated
8/18/2026
12:46:10 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
3.68
25th Percentile
0.73
75th Percentile
3.98
BROS PEG (2.52) vs Industry Median (3.68): 32% discount
Symbol
Company
PEG
P/E
Growth
vs BROS
WING
Wingstop Inc.
0.73
37.3
51.1%
-71%
YUMC
Yum China Holdings, Inc.
3.68
17.3
4.7%
+46%
SBUX
Starbucks Corporation
3.98
62.0
15.6%
+58%
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.
