PE ratio relative to earnings growth — is the valuation justified?
1.17
PEG Ratio
1.17
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$578.85
TTM EPS
$26.54
P/E Ratio
21.81
Growth Rate
18.6%
5-Year EPS CAGR
Sector
Communication Services
Internet Content & Information
Calculated
8/13/2026
8:52:09 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.58
25th Percentile
0.30
75th Percentile
0.58
META PEG (1.17) vs Industry Median (0.58): 103% premium
Symbol
Company
PEG
P/E
Growth
vs META
TCEHY
Tencent Holdings Limited
0.30
2.2
7.4%
-74%
GOOG
Alphabet Inc.
0.58
17.2
29.8%
-51%
GOOGL
Alphabet Inc.
0.58
17.3
29.8%
-51%
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.
