PE ratio relative to earnings growth — is the valuation justified?
—
PEG Ratio
Negative EPS growth — PEG not meaningful when earnings are declining
—
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$21.11
TTM EPS
$2.03
P/E Ratio
10.40
Growth Rate
-9.4%
5-Year EPS CAGR
Sector
Consumer Defensive
Packaged Foods
Calculated
8/18/2026
4:13:18 PM
PEG Ratio Unavailable
Negative Growth — PEG not meaningful
Peer Comparison
Sample Size
2 peers
Industry Median PEG
5.74
25th Percentile
2.33
75th Percentile
9.15
Symbol
Company
PEG
P/E
Growth
vs CPB
LW
Lamb Weston Holdings, Inc.
2.33
20.2
8.7%
—
MKC
McCormick & Company, Incorporated
9.15
9.0
1.0%
—
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.
