PE ratio relative to earnings growth — is the valuation justified?
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PEG Ratio
Negative EPS growth — PEG not meaningful when earnings are declining
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Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$580.00
TTM EPS
$27.13
P/E Ratio
21.38
Growth Rate
-2.4%
5-Year EPS CAGR
Sector
Industrials
Aerospace & Defense
Calculated
7/28/2026
7:07:42 AM
PEG Ratio Unavailable
Negative Growth — PEG not meaningful
Peer Comparison
Sample Size
3 peers
Industry Median PEG
3.06
25th Percentile
1.97
75th Percentile
3.39
Symbol
Company
PEG
P/E
Growth
vs LMT
NOC
Northrop Grumman Corporation
1.97
17.4
8.8%
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RTX
RTX Corporation
3.06
38.5
12.6%
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GD
General Dynamics Corporation
3.39
24.5
7.2%
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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.
