CMS PEG Ratio Analysis
Updated 1089h ago·SEC filings & market data
Key Takeaway
The current PEG ratio of 1.81x means the stock’s price is 1.81 times its expected earnings growth rate; a PEG below 1.0 is typically considered undervalued relative to growth.
Sector Performance
71th percentileCMS
1.81x
Sector Median
0.77x
Sector Avg
2.65x
Prior Period
1.87x(Jun 2026)
Deep Analysis
The current PEG ratio of 1.81x means the stock’s price is 1.81 times its expected earnings growth rate; a PEG below 1.0 is typically considered undervalued relative to growth.
This sits well above the sector median of 0.92x, placing CMS in the 69th percentile among peers — suggesting it is pricier than most similar companies on a growth-adjusted basis. The PEG ratio has been stable over the last eight quarters, with no year-over-year change available and a quarter-over-quarter decline of -3.2% (from 1.87x to 1.81x in the most recent values). A level above 1.0 combined with a stable, slightly declining trend indicates that the stock still carries a premium valuation for its growth, but the modest quarterly drop could signal easing overvaluation. This metric contradicts the overall NEUTRAL verdict because the elevated PEG relative to the sector median points to a less attractive risk/reward profile than neutral would imply.
Frequently Asked Questions
What does the PEG Ratio tell investors about CMS?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are CMS's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: FORM (0.49x), HII (0.48x), CPRI (0.47x), CBOE (0.46x), CELH (0.46x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.81x
Sector Median
0.77x
Sector Avg
2.65x
How CMS's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.