PE ratio relative to earnings growth — is the valuation justified?
0.35
PEG Ratio
0.35
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$493.33
TTM EPS
$26.68
P/E Ratio
18.49
Growth Rate
52.5%
5-Year EPS CAGR
Sector
Consumer Cyclical
Specialty Retail
Calculated
8/18/2026
9:45:59 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.76
25th Percentile
1.37
75th Percentile
1.83
ULTA PEG (0.35) vs Industry Median (1.76): 80% discount
Symbol
Company
PEG
P/E
Growth
vs ULTA
AZO
AutoZone, Inc.
1.37
20.8
15.1%
+290%
WSM
Williams-Sonoma, Inc.
1.76
26.9
15.3%
+401%
DKS
DICK'S Sporting Goods, Inc.
1.83
18.7
10.2%
+419%
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.
