PE ratio relative to earnings growth — is the valuation justified?
2.41
PEG Ratio
2.41
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$15.20
TTM EPS
$1.17
P/E Ratio
12.99
Growth Rate
5.4%
5-Year EPS CAGR
Sector
Consumer Cyclical
Restaurants
Calculated
8/28/2026
3:30:38 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.22
25th Percentile
0.08
75th Percentile
0.69
LOCO PEG (2.41) vs Industry Median (0.22): 987% premium
Symbol
Company
PEG
P/E
Growth
vs LOCO
PBPB
Potbelly Corporation
0.08
48.9
650.0%
-97%
SHAK
Shake Shack Inc.
0.22
75.1
338.5%
-91%
EAT
BRINKER INTERNATIONAL, INC
0.69
21.5
31.0%
-71%
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.
