PEG Ratio

A PEG ratio of 0.62x means the stock's price is low relative to its expected earnings growth rate—generally, a PEG below 1.0 suggests the stock may be undervalued given its growth prospects.

This value sits well below the sector median of 0.94x, placing FICO in the 37th percentile among its sector peers, meaning about two-thirds of peers have a higher PEG ratio. The metric has been trending upward over the last eight quarters, though the year-over-year change is not available; quarter-over-quarter it decreased by 3.1% (from 0.64x to 0.62x). The combination of a low PEG ratio (cheap relative to growth) with a rising trend suggests the stock has become slightly more expensive recently, but still offers a valuation advantage versus the sector. This low PEG supports a positive investment thesis on valuation, while the upward trend introduces a caution that the discount is narrowing. Overall, the PEG ratio is favorable on its own, which partially supports the NEUTRAL verdict—indicating that despite this attractive metric, other factors keep the overall assessment balanced.

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