PE ratio relative to earnings growth — is the valuation justified?
2.45
PEG Ratio
2.45
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$32.68
TTM EPS
$1.03
P/E Ratio
31.73
Growth Rate
13.0%
5-Year EPS CAGR
Sector
Communication Services
Publishing
Calculated
8/18/2026
12:46:56 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
2.15
25th Percentile
0.07
75th Percentile
12.50
NWS PEG (2.45) vs Industry Median (2.15): 14% premium
Symbol
Company
PEG
P/E
Growth
vs NWS
FWONA
Formula One Group
0.07
50.8
715.1%
-97%
NWSA
News Corporation
2.15
27.9
13.0%
-12%
FOXA
Fox Corporation
12.50
18.0
1.4%
+411%
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.
