PEG Ratio
Updated 269h ago
Sector Performance
69th percentileCMS
1.81x
Sector Median
0.94x
Sector Avg
3.03x
Deep Analysis
The PEG ratio (price-to-earnings divided by expected earnings growth rate) measures whether a stock’s price is reasonable relative to its projected profit growth.
At 1.81x, CMS trades above the sector median of 0.92x and sits in the 69th percentile among peers, indicating it carries a higher valuation than most comparable companies. The metric has been stable over the last eight quarters, with no year-over-year change available and a modest quarter-over-quarter decline of -3.2%. This combination of an elevated but stable-to-slightly-declining PEG suggests that while CMS is not cheap versus its sector, the premium is not widening—limiting both upside opportunity and downside risk. The reading does not contradict the overall NEUTRAL verdict, as the level implies fair-to-slightly-rich pricing while the stable trend offers no clear signal for a bullish or bearish shift.
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: NUE (0.06x), VLO (0.06x), NKE (0.05x), NCLH (0.05x), MKTX (0.05x).
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
0.94x
Sector Avg
3.03x
How CMS's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.