PE ratio relative to earnings growth — is the valuation justified?
4.21
PEG Ratio
4.21
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$76.01
TTM EPS
$1.51
P/E Ratio
50.34
Growth Rate
11.9%
5-Year EPS CAGR
Sector
Basic Materials
Agricultural Inputs
Calculated
8/18/2026
6:23:57 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.34
25th Percentile
0.25
75th Percentile
0.38
CTVA PEG (4.21) vs Industry Median (0.34): 1150% premium
Symbol
Company
PEG
P/E
Growth
vs CTVA
CF
CF Industries Holdings, Inc.
0.25
8.7
34.9%
-94%
NTR
Nutrien Ltd.
0.34
13.8
41.0%
-92%
ICL
ICL Group Ltd
0.38
21.8
57.3%
-91%
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.
