PE ratio relative to earnings growth — is the valuation justified?
0.86
PEG Ratio
0.86
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$7.86
TTM EPS
$1.41
P/E Ratio
5.57
Growth Rate
6.5%
5-Year EPS CAGR
Sector
Communication Services
Internet Content & Information
Calculated
8/18/2026
10:26:34 AM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.18
25th Percentile
0.08
75th Percentile
0.29
WB PEG (0.86) vs Industry Median (0.18): 373% premium
Symbol
Company
PEG
P/E
Growth
vs WB
TME
Tencent Music Entertainment Group
0.08
1.7
22.9%
-91%
YELP
Yelp Inc.
0.29
18.7
65.2%
-67%
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.
