PE ratio relative to earnings growth — is the valuation justified?
0.47
PEG Ratio
0.47
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$21.86
TTM EPS
$0.85
P/E Ratio
25.72
Growth Rate
54.3%
5-Year EPS CAGR
Sector
Healthcare
Medical - Healthcare Information Services
Calculated
8/18/2026
12:42:05 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
2.48
25th Percentile
0.67
75th Percentile
5.89
DOCS PEG (0.47) vs Industry Median (2.48): 81% discount
Symbol
Company
PEG
P/E
Growth
vs DOCS
GDRX
GoodRx Holdings, Inc.
0.67
76.3
113.5%
+42%
VEEV
Veeva Systems Inc.
2.48
42.5
17.1%
+425%
PGNY
Progyny, Inc.
5.89
27.8
4.7%
+1144%
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.
