PE ratio relative to earnings growth — is the valuation justified?
—
PEG Ratio
Negative EPS growth — PEG not meaningful when earnings are declining
—
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$53.45
TTM EPS
$0.51
P/E Ratio
104.80
Growth Rate
-24.6%
5-Year EPS CAGR
Sector
Technology
Semiconductors
Calculated
7/28/2026
7:18:33 AM
PEG Ratio Unavailable
Negative Growth — PEG not meaningful
Peer Comparison
Sample Size
3 peers
Industry Median PEG
3.40
25th Percentile
0.28
75th Percentile
8.18
Symbol
Company
PEG
P/E
Growth
vs STM
NXPI
NXP Semiconductors N.V.
0.28
25.6
92.8%
—
MPWR
Monolithic Power Systems, Inc.
3.40
96.5
28.4%
—
ADI
Analog Devices, Inc.
8.18
55.3
6.8%
—
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.
