PE ratio relative to earnings growth — is the valuation justified?
0.42
PEG Ratio
0.42
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$176.27
TTM EPS
$13.49
P/E Ratio
13.07
Growth Rate
30.8%
5-Year EPS CAGR
Sector
Basic Materials
Aluminum
Calculated
8/18/2026
10:00:39 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.53
25th Percentile
0.01
75th Percentile
1.47
KALU PEG (0.42) vs Industry Median (0.53): 20% discount
Symbol
Company
PEG
P/E
Growth
vs KALU
AA
Alcoa Corporation
0.01
9.9
1619.2%
-99%
IOSP
Innospec Inc.
0.53
16.9
32.0%
+25%
CHCO
City Holding Company
1.47
14.8
10.0%
+247%
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.
