PE ratio relative to earnings growth — is the valuation justified?
0.06
PEG Ratio
0.06
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$35.80
TTM EPS
$27.40
P/E Ratio
1.31
Growth Rate
20.6%
5-Year EPS CAGR
Sector
Healthcare
Drug Manufacturers - General
Calculated
7/28/2026
7:27:27 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.53
25th Percentile
0.99
75th Percentile
1.61
NONOF PEG (0.06) vs Industry Median (1.53): 96% discount
Symbol
Company
PEG
P/E
Growth
vs NONOF
CMXHF
CSL Limited
0.99
13.9
14.1%
+1452%
LRLCF
L'Oréal S.A.
1.53
19.1
12.5%
+2302%
NVSEF
Novartis AG
1.61
24.2
15.0%
+2438%
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.
