PE ratio relative to earnings growth — is the valuation justified?
5.85
PEG Ratio
5.85
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$82.11
TTM EPS
$2.33
P/E Ratio
35.24
Growth Rate
6.0%
5-Year EPS CAGR
Sector
Industrials
Specialty Business Services
Calculated
8/18/2026
9:40:50 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
2.44
25th Percentile
0.89
75th Percentile
2.97
RBA PEG (5.85) vs Industry Median (2.44): 140% premium
Symbol
Company
PEG
P/E
Growth
vs RBA
MMS
Maximus, Inc.
0.89
9.2
10.3%
-85%
ARMK
Aramark
2.44
43.2
17.7%
-58%
CTAS
Cintas Corporation
2.97
40.3
13.6%
-49%
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.
