PE ratio relative to earnings growth — is the valuation justified?
1.08
PEG Ratio
1.08
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$222.26
TTM EPS
$8.89
P/E Ratio
25.00
Growth Rate
23.1%
5-Year EPS CAGR
Sector
Healthcare
Medical - Care Facilities
Calculated
8/28/2026
5:30:58 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
2.18
25th Percentile
2.02
75th Percentile
2.35
NHC PEG (1.08) vs Industry Median (2.18): 51% discount
Symbol
Company
PEG
P/E
Growth
vs NHC
ENSG
ENSIGN GROUP, INC
2.02
27.2
13.5%
+87%
CASS
CASS INFORMATION SYSTEMS INC
2.35
20.5
8.7%
+117%
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.
