PE ratio relative to earnings growth — is the valuation justified?
1.30
PEG Ratio
1.30
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$270.88
TTM EPS
$14.83
P/E Ratio
18.27
Growth Rate
14.0%
5-Year EPS CAGR
Sector
Industrials
Industrial - Machinery
Calculated
7/28/2026
7:27:28 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.60
25th Percentile
1.31
75th Percentile
3.29
SBGSF PEG (1.30) vs Industry Median (1.60): 19% discount
Symbol
Company
PEG
P/E
Growth
vs SBGSF
SBGSY
Schneider Electric S.E.
1.31
18.3
14.0%
+1%
SMAWF
Siemens AG
1.60
31.5
19.6%
+23%
AIQUF
L'Air Liquide S.A.
3.29
17.6
5.4%
+152%
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.
