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 1.05x suggests the stock is priced roughly in line with its projected earnings growth.

Among Consumer Cyclical peers, the sector median PEG is 0.57x, placing Boot Barn at the 67th percentile – meaning it is more expensive relative to growth than two-thirds of its sector. While the year-over-year change is not available, the PEG ratio declined 24.5% quarter-over-quarter from 1.39x to the current 1.05x, indicating that either the P/E has fallen or growth expectations have risen. This combination of a level above the sector median but a sharp quarterly drop could imply that the stock is becoming more reasonably valued after previously being stretched, reducing some downside risk. However, the current PEG still exceeds the sector median, leaving limited margin of safety. This metric generally supports the NEUTRAL verdict because the valuation is neither clearly cheap nor expensive relative to growth, and the recent improvement alone does not tilt the outlook decisively.

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