PE ratio relative to earnings growth — is the valuation justified?
1.96
PEG Ratio
1.96
Growth Rate Source
Limited Data Quality3-Year EPS CAGR
Current Price
$47.51
TTM EPS
$1.65
P/E Ratio
28.79
Growth Rate
14.7%
3-Year EPS CAGR
Sector
Consumer Cyclical
Gambling, Resorts & Casinos
Calculated
8/18/2026
1:04:02 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.55
25th Percentile
0.19
75th Percentile
0.92
MGM PEG (1.96) vs Industry Median (0.55): 255% premium
Symbol
Company
PEG
P/E
Growth
vs MGM
MLCO
Melco Resorts & Entertainment Limited
0.19
9.3
50.0%
-91%
LVS
Las Vegas Sands Corp.
0.92
17.7
19.3%
-53%
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.
