Skip to content
stocks-llm

PEG ratio

The PEG ratio divides a company’s P/E by its earnings-growth rate, so a fast grower and a slow grower can be compared on valuation more fairly than by P/E alone.

The PEG ratio is the price-to-earnings (P/E) ratio divided by an expected earnings-growth rate. The idea is that a high P/E can be justified by fast growth: a company on a P/E of 30 growing earnings 30% a year has a PEG of about 1.0, while one on a P/E of 30 growing 10% has a PEG of about 3.0.

A PEG near or below 1.0 is often cited as "growth at a reasonable price," but the number is only as good as the growth estimate feeding it — growth forecasts are uncertain, and a PEG built on an optimistic estimate can look deceptively cheap.

stocks-llm derives its own PEG rather than importing one: the trailing P/E shown on this site, divided by the company’s diluted earnings-per-share growth, taken from its SEC filings. Where we hold enough filed years the growth rate is a compound annual rate over up to three of them, and every figure is labelled with the span it was measured over; only where we hold two years is it a single year’s growth. That makes it a backward-looking measure — the paragraphs above describe the textbook version, which uses a forecast — so it says what a company’s growth has actually been, not what anyone expects next. Where the growth rate would rest on one unusual year rather than on a trend — a year far below the years either side of it, a one-off jump in the latest year, or a first profitable year growing from near zero — no PEG is published at all: a ratio divided by an event is not a cheap company, and a missing number is more honest than a flattering one. The ratio is recomputed every time the P/E underneath it moves.

Lowest PEG ratios in the catalog

CompanyPEGGrowth measured over
1SLIDE INSURANCE HOLDINGS INC (SLDE)0.061-year EPS growth
2AMERICAN INTEGRITY INSURANCE GROUP (AII)0.071-year EPS growth
3Powell Industries (POWL)0.083-year EPS CAGR
4Rayonier (RYN)0.103-year EPS CAGR
5PIPER SANDLER COMPANIES (PIPR)0.123-year EPS CAGR

Live from the catalog, last updated 2026-10-20 — delayed data from SEC EDGAR + market data.

Ask about this →

P/E ratio explained →

Related terms

  • Market capitalization — Market capitalization (market cap) is the total value of a company’s shares — its share price multiplied by the number of shares outstanding.
  • P/E ratio (price-to-earnings) — The P/E ratio divides a company’s share price by its earnings per share, showing how much investors pay for each dollar of profit.
  • EV/EBITDA — EV/EBITDA compares a company’s enterprise value to its earnings before interest, taxes, depreciation, and amortization — a capital-structure-neutral valuation measure.
  • EBITDA — EBITDA is earnings before interest, taxes, depreciation, and amortization — a measure of operating profitability that ignores financing and non-cash charges.
  • Book value & price-to-book (P/B) — Book value is a company’s net assets on its balance sheet; the price-to-book (P/B) ratio compares the share price to that book value per share.

See more terms in the stocks-llm glossary.

Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.