PE ratio relative to earnings growth — is the valuation justified?
0.58
PEG Ratio
0.58
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$173.67
TTM EPS
$10.15
P/E Ratio
17.11
Growth Rate
29.5%
5-Year EPS CAGR
Sector
Industrials
Rental & Leasing Services
Calculated
8/18/2026
2:19:06 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
1.42
25th Percentile
0.78
75th Percentile
2.06
GATX PEG (0.58) vs Industry Median (1.42): 59% discount
Symbol
Company
PEG
P/E
Growth
vs GATX
FMAO
Farmers & Merchants Bancorp, Inc.
0.78
10.5
13.6%
+34%
MGRC
McGrath RentCorp
2.06
17.6
8.5%
+255%
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.
