PE ratio relative to earnings growth — is the valuation justified?
1.80
PEG Ratio
1.80
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$9.58
TTM EPS
$0.63
P/E Ratio
15.21
Growth Rate
8.4%
5-Year EPS CAGR
Sector
Healthcare
Drug Manufacturers - Specialty & Generic
Calculated
8/18/2026
9:46:40 AM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.51
25th Percentile
0.01
75th Percentile
1.01
HLN PEG (1.80) vs Industry Median (0.51): 253% premium
Symbol
Company
PEG
P/E
Growth
vs HLN
TAK
Takeda Pharmaceutical Company Limited
0.01
0.3
35.1%
-100%
ZTS
Zoetis Inc.
1.01
12.0
11.9%
-44%
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.
