PE ratio relative to earnings growth — is the valuation justified?
8.64
PEG Ratio
8.64
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$51.68
TTM EPS
$1.16
P/E Ratio
44.55
Growth Rate
5.2%
5-Year EPS CAGR
Sector
Healthcare
Biotechnology
Calculated
8/18/2026
9:41:10 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.87
25th Percentile
0.25
75th Percentile
2.50
TECH PEG (8.64) vs Industry Median (0.87): 893% premium
Symbol
Company
PEG
P/E
Growth
vs TECH
INCY
Incyte Corporation
0.25
15.7
62.7%
-97%
UTHR
United Therapeutics Corporation
0.87
18.2
20.9%
-90%
STE
STERIS plc
2.50
28.1
11.2%
-71%
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.
