PE ratio relative to earnings growth — is the valuation justified?
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PEG Ratio
Negative EPS growth — PEG not meaningful when earnings are declining
PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions
PEG ratio is generally unreliable for Financial Services companies
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Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$41.62
TTM EPS
$3.46
P/E Ratio
12.03
Growth Rate
-13.4%
5-Year EPS CAGR
Sector
Financial Services
Banks - Regional
Calculated
8/28/2026
6:44:56 PM
PEG Ratio Unavailable
Negative Growth — PEG not meaningful
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.89
25th Percentile
0.74
75th Percentile
1.04
Symbol
Company
PEG
P/E
Growth
vs EFSI
FMCB
FARMERS & MERCHANTS BANCORP
0.74
9.5
12.8%
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THFF
FIRST FINANCIAL CORP /IN/
1.04
11.7
11.2%
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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.
