PE ratio relative to earnings growth — is the valuation justified?
2.35
PEG Ratio
2.35
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$73.32
TTM EPS
$3.84
P/E Ratio
19.09
Growth Rate
8.1%
5-Year EPS CAGR
Sector
Basic Materials
Chemicals - Specialty
Calculated
8/20/2026
1:27:31 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
5.89
25th Percentile
0.53
75th Percentile
8.01
ODC PEG (2.35) vs Industry Median (5.89): 60% discount
Symbol
Company
PEG
P/E
Growth
vs ODC
IOSP
Innospec Inc.
0.53
16.9
32.0%
-77%
FUL
H.B. Fuller Company
5.89
18.6
3.2%
+150%
SXT
Sensient Technologies Corporation
8.01
33.6
4.2%
+241%
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.
