What is Advanced Drainage Systems, Inc. (WMS)'s PEG ratio?

Advanced Drainage Systems, Inc. (WMS) has a PEG ratio of 1.43 (Fairly Valued), based on a PE ratio of 22.5 and expected EPS growth of 15.7% (5-Year EPS CAGR).

Is WMS undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 1.43, Advanced Drainage Systems, Inc. (WMS) screens as "Fairly Valued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/WMS.

Advanced Drainage Systems, Inc. (WMS) PEG Ratio

Fairly Valued

PE ratio relative to earnings growth — is the valuation justified?

1.43

PEG Ratio

1.43

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$130.15

TTM EPS

$5.79

P/E Ratio

22.48

Growth Rate

15.7%

5-Year EPS CAGR

Sector

Industrials

Construction

Calculated

8/18/2026

9:41:09 AM

Peer Comparison

Sample Size

7 peers

Industry Median PEG

0.98

25th Percentile

0.86

75th Percentile

1.65

WMS PEG (1.43) vs Industry Median (0.98): 45% premium

Symbol	Company	PEG	P/E	Growth	vs WMS
IGT	International Game Technology PLC	0.67	17.1	25.6%	-53%
CSL	Carlisle Companies Incorporated	0.86	20.7	24.2%	-40%
STN	Stantec Inc.	0.95	21.3	22.4%	-33%
LII	Lennox International Inc.	0.98	18.8	19.1%	-31%
WTS	Watts Water Technologies, Inc.	1.11	27.4	24.7%	-22%

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.

Advanced Drainage Systems, Inc. (WMS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on WMS

Compare with peers

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Advanced Drainage Systems, Inc. (WMS) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on WMS

Compare with peers

Explore