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PEG Ratio History Chart

See any stock's 7-year trailing PEG ratio history — P/E divided by EPS growth — with color-coded undervalued/fair/overvalued zones. Auto-populates from Yahoo Finance. Pair with the PEG ratio calculator and P/E historical chart for full context.

peg ratio explained

The PEG ratio divides a stock's trailing P/E by its year-over-year EPS growth rate — popularized by Peter Lynch, it adjusts the price you pay for the growth rate that justifies it; a PEG below 1.0 suggests the market is pricing in less than one dollar for each percentage point of earnings growth.A PEG below 1.0 is the classic undervaluation threshold; 1.0–2.0 is fairly valued for a growth business; above 2.0 implies the price assumes high growth continues indefinitely. PEG breaks down when EPS growth is negative or near zero — avoid mechanical interpretation for cyclicals at a trough. The most useful signal is a regime change: a stock whose PEG has compressed from 3x to under 1x may have become genuinely cheap, or its EPS growth may have spiked one-time on an easy compare — always check the earnings history for context.

How to Read PEG Ratio History

The PEG ratio divides a stock's trailing P/E by its year-over-year EPS growth rate. Popularized by Peter Lynch in One Up on Wall Street, it adjusts the P/E for the growth rate that justifies it. A PEG below 1.0 suggests the market is paying less than one dollar for each percentage point of earnings growth — a classic undervaluation signal. A PEG above 2.0 implies the price already assumes high growth continues indefinitely.

Watching the PEG over time is more instructive than a single reading. A stock whose PEG has compressed from 3.0× to 0.8× may have become genuinely cheap — or its EPS growth may have spiked one-time on an easy compare. Context from the P/E historical chart and earnings history helps distinguish real repricing from noise.

Periods of negative or near-zero EPS growth are shown as N/A because the PEG formula breaks down when the denominator approaches zero — a negative PEG is mathematically meaningless. These gaps are normal for cyclical businesses at troughs; use the ROIC guide to assess whether the business model remains intact through the cycle.

The green/amber/red color coding makes it easy to spot regime changes at a glance: stretches of sustained green bars suggest a growth stock at a reasonable price; a multi-year red band means expectations were historically stretched. Neither guarantees future performance, but the historical context anchors your assumptions when building a DCF model.

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