PEG Ratio

The PEG ratio divides a stock’s price-to-earnings (P/E) ratio by its expected earnings growth rate, so a value of 0.31x indicates the stock trades at a low price relative to its projected growth—often considered undervalued.

Best Buy’s 0.31x is below the sector median of 0.59x, placing it in the 37th percentile among Consumer Cyclical peers, meaning most competitors have higher PEG ratios. Year-over-year change is not available, but quarter-over-quarter the metric surged from 0.03x to 0.31x—a 933.3% increase. The combination of a low absolute PEG (suggesting potential value) and a massive quarterly jump (indicating rapid changes in either earnings estimates or stock price) implies higher uncertainty, making the opportunity harder to evaluate. This metric partially supports the overall NEUTRAL verdict: the undervaluation signal is a positive, but the extreme volatility in the trend warrants caution, aligning with a neutral stance.

Frequently Asked Questions

Closest Sector Peers