PE ratio relative to earnings growth — is the valuation justified?
0.60
PEG Ratio
0.60
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$356.65
TTM EPS
$19.91
P/E Ratio
17.91
Growth Rate
29.8%
5-Year EPS CAGR
Sector
Communication Services
Internet Content & Information
Calculated
8/1/2026
8:24:07 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.60
25th Percentile
0.30
75th Percentile
1.13
GOOG PEG (0.60) vs Industry Median (0.60): 0% premium
Symbol
Company
PEG
P/E
Growth
vs GOOG
TCEHY
Tencent Holdings Limited
0.30
2.2
7.4%
-50%
GOOGL
Alphabet Inc.
0.60
17.9
29.8%
-0%
META
Meta Platforms, Inc.
1.13
21.0
18.6%
+88%
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.
