PE ratio relative to earnings growth — is the valuation justified?
1.82
PEG Ratio
PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions
PEG ratio is generally unreliable for Financial Services companies
1.82
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$214.77
TTM EPS
$12.37
P/E Ratio
17.36
Growth Rate
9.5%
5-Year EPS CAGR
Sector
Financial Services
Financial - Capital Markets
Calculated
8/29/2026
7:01:24 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.35
25th Percentile
1.01
75th Percentile
2.13
MS PEG (1.82) vs Industry Median (1.35): 35% premium
Symbol
Company
PEG
P/E
Growth
vs MS
GS
GOLDMAN SACHS GROUP INC
1.01
16.0
15.8%
-45%
EVR
Evercore Inc.
1.35
16.4
12.1%
-26%
SF
STIFEL FINANCIAL CORP
2.13
14.5
6.8%
+17%
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.
