PEG Ratio
Higher than 76% of Healthcare sector peers
Updated 320h ago
Sector Performance
76th percentileDGX
1.43x
Sector Median
0.66x
Sector Avg
1.50x
Deep Analysis
The PEG ratio (price-to-earnings-to-growth) compares a stock's price to its earnings rate, adjusted for expected growth—a value of 1.43x means the stock is trading at roughly 1.43 times its projected earnings growth rate.
Among Healthcare sector peers, this is higher than the 0.70x median, placing DGX in the 72nd percentile, indicating it is more expensive relative to growth than most competitors. Trend data is not available: both year-over-year and quarter-over-quarter changes are listed as N/A, and there are no historical figures beyond the current 1.43x. Because the PEG ratio sits above the sector median but no trend can be assessed, the current level suggests a premium valuation that may limit upside potential without confirmatory growth evidence. This elevated reading, combined with the absence of trend direction, introduces caution but does not outright contradict the overall NEUTRAL verdict—it supports a balanced view where the metric signals above-average cost, yet lacks momentum to confirm overvaluation.
Frequently Asked Questions
What does the PEG Ratio tell investors about DGX?
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.
How does DGX's PEG Ratio compare to its sector?
DGX's PEG Ratio of 1.43x compares to a Healthcare sector median of 0.66x, placing it in the 76th percentile.
Who are DGX's closest peers by PEG Ratio?
The closest Healthcare peers by PEG Ratio include: ZBH (0.70x), TECH (0.62x), BIIB (0.56x), RHHBY (0.77x), A (0.40x).
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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1.43x
Sector Median
0.66x
Sector Avg
1.50x
How DGX's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.