PE ratio relative to earnings growth — is the valuation justified?
0.36
PEG Ratio
0.36
Current Price
$26.80
TTM EPS
$2.09
P/E Ratio
12.82
Growth Rate
35.6%
3-Year EPS CAGR
Sector
Healthcare
Medical - Care Facilities
Calculated
8/28/2026
12:49:34 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
2.17
25th Percentile
0.44
75th Percentile
3.90
MD PEG (0.36) vs Industry Median (2.17): 83% discount
Symbol
Company
PEG
P/E
Growth
vs MD
UHS
UNIVERSAL HEALTH SERVICES INC
0.44
7.0
16.2%
+21%
PBH
Prestige Consumer Healthcare Inc.
3.90
14.3
3.7%
+982%
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.
