PE ratio relative to earnings growth — is the valuation justified?
1.48
PEG Ratio
1.48
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$22.34
TTM EPS
$4.75
P/E Ratio
4.70
Growth Rate
3.2%
5-Year EPS CAGR
Sector
Technology
Software - Infrastructure
Calculated
8/18/2026
10:02:54 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.02
25th Percentile
0.62
75th Percentile
1.99
TDC PEG (1.48) vs Industry Median (1.02): 45% premium
Symbol
Company
PEG
P/E
Growth
vs TDC
WEX
WEX Inc.
0.62
14.6
23.6%
-58%
QLYS
Qualys, Inc.
1.02
18.9
18.6%
-31%
SPSC
SPS Commerce, Inc.
1.99
27.4
13.8%
+35%
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.
