PE ratio relative to earnings growth — is the valuation justified?
27.81
PEG Ratio
27.81
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$19.17
TTM EPS
$0.68
P/E Ratio
28.19
Growth Rate
1.0%
5-Year EPS CAGR
Sector
Real Estate
REIT - Mortgage
Calculated
8/18/2026
12:45:05 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.49
25th Percentile
0.29
75th Percentile
0.70
STWD PEG (27.81) vs Industry Median (0.49): 5545% premium
Symbol
Company
PEG
P/E
Growth
vs STWD
ARI
Apollo Commercial Real Estate Finance, Inc.
0.29
13.5
46.5%
-99%
OHI
Omega Healthcare Investors, Inc.
0.70
16.4
23.6%
-97%
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.
