PE ratio relative to earnings growth — is the valuation justified?
0.76
PEG Ratio
0.76
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$114.93
TTM EPS
$4.92
P/E Ratio
23.36
Growth Rate
30.9%
5-Year EPS CAGR
Sector
Technology
Software - Application
Calculated
8/18/2026
1:01:54 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
1.50
25th Percentile
0.99
75th Percentile
2.01
PCTY PEG (0.76) vs Industry Median (1.50): 50% discount
Symbol
Company
PEG
P/E
Growth
vs PCTY
PAYC
Paycom Software, Inc.
0.99
26.5
26.7%
+31%
MANH
Manhattan Associates, Inc.
2.01
43.3
21.6%
+165%
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.
