PE ratio relative to earnings growth — is the valuation justified?
1.61
PEG Ratio
1.61
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$158.24
TTM EPS
$6.55
P/E Ratio
24.16
Growth Rate
15.0%
5-Year EPS CAGR
Sector
Healthcare
Drug Manufacturers - General
Calculated
7/28/2026
7:28:08 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.51
25th Percentile
0.06
75th Percentile
5.42
NVSEF PEG (1.61) vs Industry Median (1.51): 7% premium
Symbol
Company
PEG
P/E
Growth
vs NVSEF
NONOF
Novo Nordisk A/S
0.06
1.3
20.6%
-96%
AZNCF
AstraZeneca PLC
1.51
31.0
20.5%
-6%
BHPLF
BHP Group Limited
5.42
10.3
1.9%
+236%
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.
