PE ratio relative to earnings growth — is the valuation justified?
1.76
PEG Ratio
1.76
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$240.42
TTM EPS
$8.93
P/E Ratio
26.92
Growth Rate
15.3%
5-Year EPS CAGR
Sector
Consumer Cyclical
Specialty Retail
Calculated
8/18/2026
9:44:19 AM
Peer Comparison
Sample Size
3 peers
Industry Median PEG
1.37
25th Percentile
0.35
75th Percentile
1.83
WSM PEG (1.76) vs Industry Median (1.37): 28% premium
Symbol
Company
PEG
P/E
Growth
vs WSM
ULTA
Ulta Beauty, Inc.
0.35
18.5
52.5%
-80%
AZO
AutoZone, Inc.
1.37
20.8
15.1%
-22%
DKS
DICK'S Sporting Goods, Inc.
1.83
18.7
10.2%
+4%
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.
