PE ratio relative to earnings growth — is the valuation justified?
0.80
PEG Ratio
0.80
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$74.65
TTM EPS
$2.57
P/E Ratio
29.05
Growth Rate
36.3%
5-Year EPS CAGR
Sector
Industrials
Industrial - Machinery
Calculated
7/22/2026
12:48:13 AM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
2.20
25th Percentile
1.46
75th Percentile
2.94
GEAGF PEG (0.80) vs Industry Median (2.20): 64% discount
Symbol
Company
PEG
P/E
Growth
vs GEAGF
PH
Parker-Hannifin Corporation
1.46
35.1
24.0%
+83%
CMI
Cummins Inc.
2.94
33.2
11.3%
+267%
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.
