PE ratio relative to earnings growth — is the valuation justified?
0.08
PEG Ratio
0.08
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$9.53
TTM EPS
$5.48
P/E Ratio
1.74
Growth Rate
22.9%
5-Year EPS CAGR
Sector
Communication Services
Internet Content & Information
Calculated
8/18/2026
12:45:14 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.58
25th Percentile
0.30
75th Percentile
0.86
TME PEG (0.08) vs Industry Median (0.58): 87% discount
Symbol
Company
PEG
P/E
Growth
vs TME
TCEHY
Tencent Holdings Limited
0.30
2.2
7.4%
+294%
WB
Weibo Corporation
0.86
5.6
6.5%
+1029%
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.
