HWMNEUTRAL

PEG Ratio

0.85x

Updated 225h ago

Sector Performance

47th percentile

HWM

0.85x

Sector Median

0.94x

Sector Avg

3.01x

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Deep Analysis

The PEG ratio of 0.85x means the stock's price-to-earnings (P/E) multiple is 0.85 times its expected earnings growth rate, suggesting it is priced below its growth prospects.

Compared to the sector median of 0.94x, HWM trades at a lower PEG, placing it in the 47th percentile among sector peers. The year-over-year change is not available, but the quarter-over-quarter decline of -18.3% shows the PEG has narrowed from 1.04x to 0.85x. A low PEG level combined with a decreasing trend could indicate diminishing growth expectations or falling earnings projections, presenting a potential opportunity if the valuation is justified, but also a risk if growth slows further. This metric supports the overall NEUTRAL verdict because while the PEG is below the sector median, the sharp quarterly drop warrants caution rather than outright bullishness.

Frequently Asked Questions

What does the PEG Ratio tell investors about HWM?

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 HWM's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: NUE (0.06x), VLO (0.06x), LNC (0.05x), NKE (0.05x), NCLH (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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HWM

0.85x

Sector Median

0.94x

Sector Avg

3.01x

How HWM's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.