What is SLM Corporation (SLM)'s PEG ratio?

SLM Corporation (SLM) has a PEG ratio of 0.78 (Potentially Undervalued), based on a PE ratio of 7.2 and expected EPS growth of 9.2% (5-Year EPS CAGR).

Is SLM undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.78, SLM Corporation (SLM) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/SLM.

SLM Corporation (SLM) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.78

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

0.78

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$25.60

TTM EPS

$3.57

P/E Ratio

7.17

Growth Rate

9.2%

5-Year EPS CAGR

Sector

Financial Services

Financial - Credit Services

Calculated

8/18/2026

1:11:48 PM

Peer Comparison

Sample Size

7 peers

Industry Median PEG

1.08

25th Percentile

0.60

75th Percentile

3.31

SLM PEG (0.78) vs Industry Median (1.08): 28% discount

Symbol	Company	PEG	P/E	Growth	vs SLM
MTG	MGIC Investment Corporation	0.43	8.3	19.3%	-45%
ZION	Zions Bancorporation, National Association	0.60	8.8	14.7%	-23%
AGM	Federal Agricultural Mortgage	0.73	11.0	15.0%	-7%
FCFS	FirstCash Holdings, Inc	1.08	25.3	23.4%	+39%
STT	State Street Corporation	2.04	17.0	8.3%	+161%

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.

SLM Corporation (SLM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on SLM

Compare with peers

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SLM Corporation (SLM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on SLM

Compare with peers

Explore