PE ratio relative to earnings growth — is the valuation justified?
8.87
PEG Ratio
8.87
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$348.75
TTM EPS
$1.08
P/E Ratio
322.92
Growth Rate
36.4%
5-Year EPS CAGR
Sector
Consumer Cyclical
Auto - Manufacturers
Calculated
8/29/2026
11:43:59 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
0.77
25th Percentile
0.44
75th Percentile
1.86
TSLA PEG (8.87) vs Industry Median (0.77): 1055% premium
Symbol
Company
PEG
P/E
Growth
vs TSLA
BYDDF
BYD CO LTD
0.44
4.5
10.2%
-95%
AMZN
AMAZON COM INC
0.77
21.4
27.9%
-91%
BYDDY
BYD CO LTD
1.86
4.6
2.5%
-79%
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.
