PE ratio relative to earnings growth — is the valuation justified?
3.40
PEG Ratio
3.40
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$1339.08
TTM EPS
$13.87
P/E Ratio
96.55
Growth Rate
28.4%
5-Year EPS CAGR
Sector
Technology
Semiconductors
Calculated
7/28/2026
4:21:28 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
4.23
25th Percentile
0.28
75th Percentile
8.18
MPWR PEG (3.40) vs Industry Median (4.23): 20% discount
Symbol
Company
PEG
P/E
Growth
vs MPWR
NXPI
NXP Semiconductors N.V.
0.28
25.6
92.8%
-92%
ADI
Analog Devices, Inc.
8.18
55.3
6.8%
+141%
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.
