PE ratio relative to earnings growth — is the valuation justified?
3.06
PEG Ratio
3.06
Growth Rate Source
Limited Data Quality3-Year EPS CAGR
Current Price
$218.42
TTM EPS
$5.68
P/E Ratio
38.45
Growth Rate
12.6%
3-Year EPS CAGR
Sector
Industrials
Aerospace & Defense
Calculated
7/28/2026
6:45:03 AM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
2.68
25th Percentile
1.97
75th Percentile
3.39
RTX PEG (3.06) vs Industry Median (2.68): 14% premium
Symbol
Company
PEG
P/E
Growth
vs RTX
NOC
Northrop Grumman Corporation
1.97
17.4
8.8%
-36%
GD
General Dynamics Corporation
3.39
24.5
7.2%
+11%
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.
