PE ratio relative to earnings growth — is the valuation justified?
11.69
PEG Ratio
11.69
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$154.49
TTM EPS
$6.82
P/E Ratio
22.65
Growth Rate
1.9%
5-Year EPS CAGR
Sector
Healthcare
Biotechnology
Calculated
8/18/2026
10:07:07 AM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
2.93
25th Percentile
0.25
75th Percentile
5.62
NBIX PEG (11.69) vs Industry Median (2.93): 299% premium
Symbol
Company
PEG
P/E
Growth
vs NBIX
INCY
Incyte Corporation
0.25
15.7
62.7%
-98%
BMRN
BioMarin Pharmaceutical Inc.
5.62
151.3
26.9%
-52%
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.
