HCA PEG Ratio Analysis

The PEG ratio of 4.55x means investors are paying $4.55 for every $1 of expected annual earnings growth, a high price for growth relative to the typical benchmark of 1.0x.

This is far above the sector median of 0.81x, placing HCA in the 89th percentile among sector peers, indicating that the market prices HCA at a premium versus most competitors. The year-over-year change is not available, while the quarter-over-quarter change is -79.1%, reflecting the drop from 21.81x to the current 4.55x. That steep decline in the metric suggests the previous valuation was an outlier, but the current level remains elevated. The combination of a high level and a falling trend implies that while the stock has become less expensive on a growth-adjusted basis, it still carries above-average valuation risk. This metric supports the overall NEUTRAL verdict because the PEG ratio is not low enough to signal a clear opportunity, yet the sharp downward move tempers the caution a 4.55x level alone might raise.

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