PE ratio relative to earnings growth — is the valuation justified?
1.60
PEG Ratio
1.60
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$23.29
TTM EPS
$1.17
P/E Ratio
19.91
Growth Rate
12.5%
5-Year EPS CAGR
Sector
Healthcare
Medical - Devices
Calculated
8/20/2026
6:53:21 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.84
25th Percentile
0.68
75th Percentile
1.51
ELMD PEG (1.60) vs Industry Median (0.84): 90% premium
Symbol
Company
PEG
P/E
Growth
vs ELMD
IRMD
IRadimed Corporation
0.68
50.6
74.3%
-57%
EVI
EVI Industries, Inc.
0.84
44.2
52.7%
-47%
PDEX
Pro-Dex, Inc.
1.51
17.9
11.8%
-5%
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.
