PE ratio relative to earnings growth — is the valuation justified?
0.88
PEG Ratio
0.88
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$129.02
TTM EPS
$7.27
P/E Ratio
17.75
Growth Rate
20.1%
5-Year EPS CAGR
Sector
Consumer Cyclical
Luxury Goods
Calculated
8/18/2026
9:39:08 AM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
3.77
25th Percentile
0.92
75th Percentile
6.62
TPR PEG (0.88) vs Industry Median (3.77): 77% discount
Symbol
Company
PEG
P/E
Growth
vs TPR
RL
Ralph Lauren Corporation
0.92
23.9
25.9%
+4%
LKQ
LKQ Corporation
6.62
15.1
2.3%
+649%
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.
