CTASNEUTRAL

CTAS PEG Ratio Analysis

4.14x

Updated 101h ago·SEC filings & market data

Key Takeaway

The PEG ratio combines the price-to-earnings (P/E) multiple with the company's expected earnings growth rate, showing how much investors pay per unit of growth.

Sector Performance

88th percentile

CTAS

4.14x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

4.34x(Jun 2026)

↑ Improving

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Deep Analysis

The PEG ratio combines the price-to-earnings (P/E) multiple with the company's expected earnings growth rate, showing how much investors pay per unit of growth.

At 4.14x, CTAS trades well above the sector median of 0.92x and ranks in the 87th percentile among peers, indicating a premium valuation relative to its growth prospects. Year-over-year change is not available, but the ratio fell 4.6% quarter over quarter from 4.34x. While the high level signals that the stock is priced for stronger growth than most sector peers, the quarterly decline suggests valuation pressures may be easing. This combination creates a mixed risk profile: the elevated PEG implies limited margin of safety, yet the downward trend offers a potential entry point if growth expectations hold. Overall, this metric supports the NEUTRAL verdict, as the expensive valuation is partially offset by the recent improvement in the ratio.