PE ratio relative to earnings growth — is the valuation justified?
0.10
PEG Ratio
0.10
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$124.40
TTM EPS
$52.75
P/E Ratio
2.36
Growth Rate
23.7%
5-Year EPS CAGR
Sector
Technology
Electronic Gaming & Multimedia
Calculated
8/18/2026
7:58:14 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.30
25th Percentile
0.03
75th Percentile
11.87
NTES PEG (0.10) vs Industry Median (0.30): 67% discount
Symbol
Company
PEG
P/E
Growth
vs NTES
PDD
PDD Holdings Inc.
0.03
1.3
40.5%
-67%
TCEHY
Tencent Holdings Limited
0.30
2.2
7.4%
+201%
EA
Electronic Arts Inc.
11.87
49.0
4.1%
+11839%
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.
