PE ratio relative to earnings growth — is the valuation justified?
5.89
PEG Ratio
5.89
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$25.56
TTM EPS
$0.92
P/E Ratio
27.78
Growth Rate
4.7%
5-Year EPS CAGR
Sector
Healthcare
Medical - Healthcare Information Services
Calculated
8/18/2026
2:48:09 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.47
25th Percentile
0.39
75th Percentile
1.65
PGNY PEG (5.89) vs Industry Median (0.47): 1144% premium
Symbol
Company
PEG
P/E
Growth
vs PGNY
HQY
HealthEquity, Inc.
0.39
33.0
83.5%
-93%
DOCS
Doximity, Inc.
0.47
25.7
54.3%
-92%
INMD
InMode Ltd.
1.65
11.3
6.9%
-72%
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.
