PE ratio relative to earnings growth — is the valuation justified?
1.70
PEG Ratio
1.70
Growth Rate Source
Limited Data Quality1-Year EPS CAGR
Current Price
$39.88
TTM EPS
$0.72
P/E Ratio
55.39
Growth Rate
32.7%
1-Year EPS CAGR
Sector
Communication Services
Entertainment
Calculated
8/18/2026
10:15:05 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
2.15
25th Percentile
0.07
75th Percentile
2.17
IMAX PEG (1.70) vs Industry Median (2.15): 21% discount
Symbol
Company
PEG
P/E
Growth
vs IMAX
FWONA
Formula One Group
0.07
50.8
715.1%
-96%
NWSA
News Corporation
2.15
27.9
13.0%
+27%
WMG
Warner Music Group Corp.
2.17
19.6
9.0%
+28%
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.
