PE ratio relative to earnings growth — is the valuation justified?
2.17
PEG Ratio
2.17
Growth Rate Source
Limited Data Quality3-Year EPS CAGR
Current Price
$25.34
TTM EPS
$1.29
P/E Ratio
19.64
Growth Rate
9.0%
3-Year EPS CAGR
Sector
Communication Services
Entertainment
Calculated
8/18/2026
8:20:43 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
2.15
25th Percentile
0.07
75th Percentile
2.38
WMG PEG (2.17) vs Industry Median (2.15): 1% premium
Symbol
Company
PEG
P/E
Growth
vs WMG
FWONA
Formula One Group
0.07
50.8
715.1%
-97%
NWSA
News Corporation
2.15
27.9
13.0%
-1%
AZEK
The AZEK Company Inc.
2.38
47.3
19.8%
+10%
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.
