PE ratio relative to earnings growth — is the valuation justified?
0.40
PEG Ratio
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
0.40
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$6.10
TTM EPS
$1.55
P/E Ratio
3.94
Growth Rate
9.9%
5-Year EPS CAGR
Sector
Financial Services
Asset Management
Calculated
8/20/2026
12:39:25 AM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
3.28
25th Percentile
3.22
75th Percentile
3.33
GAB PEG (0.40) vs Industry Median (3.28): 88% discount
Symbol
Company
PEG
P/E
Growth
vs GAB
GGT
Gabelli Multimedia Trust Inc.
3.22
3.5
1.1%
+711%
GUT
The Gabelli Utility Trust
3.33
6.7
2.0%
+738%
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.
