PE ratio relative to earnings growth — is the valuation justified?
1.18
PEG Ratio
1.18
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$7.70
TTM EPS
$0.66
P/E Ratio
11.67
Growth Rate
9.9%
5-Year EPS CAGR
Sector
Consumer Cyclical
Restaurants
Calculated
8/18/2026
1:01:54 PM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
2.55
25th Percentile
1.37
75th Percentile
3.10
WEN PEG (1.18) vs Industry Median (2.55): 54% discount
Symbol
Company
PEG
P/E
Growth
vs WEN
YUM
Yum! Brands, Inc.
1.37
18.2
13.3%
+16%
DPZ
Domino's Pizza, Inc.
2.55
17.8
7.0%
+116%
DRI
Darden Restaurants, Inc.
3.10
21.7
7.0%
+164%
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.
