MCKNEUTRAL

PEG Ratio

0.61x

Updated 200h ago

Sector Performance

36th percentile

MCK

0.61x

Sector Median

0.94x

Sector Avg

3.01x

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Deep Analysis

The PEG ratio (price/earnings-to-growth) of 0.61x means the stock trades at a discount relative to its expected earnings growth rate — values below 1x often suggest an undervalued or low-growth stock.

At 0.61x, it sits well below the sector median of 0.97x, placing it in the 36th percentile among peers, meaning about two-thirds of comparable stocks have higher PEG ratios. The metric has been increasing over the last eight quarters, with no year-over-year change available and a quarter-over-quarter rise of +3.4% (from 0.59x to 0.61x). This combination of a low but rising PEG ratio implies a narrowing valuation discount — the stock may become less cheap relative to its growth as the ratio trends upward, reducing the margin of safety for value-focused investors. The metric does not directly contradict the overall NEUTRAL verdict, as the low level supports potential upside while the increasing trend tempers the opportunity, aligning with a balanced view.

Frequently Asked Questions

What does the PEG Ratio tell investors about MCK?

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 MCK'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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MCK

0.61x

Sector Median

0.94x

Sector Avg

3.01x

How MCK's PEG Ratio compares to sector peers.

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