PG PEG Ratio Analysis

The PEG ratio compares a stock's price-to-earnings (P/E) multiple to its earnings growth rate — a higher PEG suggests the stock may be expensive relative to its expected growth.

PG's current PEG of 4.88x matches the sector median of 4.88x and ranks at the 0th percentile among consumer defensive peers, meaning it is at the very bottom of the peer group (i.e., no other stock has a lower PEG). Year-over-year change is not available, but quarter-over-quarter the PEG rose 26.4%, from 3.86x to 4.88x, indicating a sharp increase in valuation relative to growth over the past three months. While the level is in line with the sector median, the rapid quarterly climb signals that growth expectations have not kept pace with the stock's price increase, raising potential overvaluation risk. This combination of a sector-average level plus a rising trend suggests heightened caution, as the stock's valuation is becoming stretched without a corresponding improvement in growth. The metric does not contradict the overall NEUTRAL verdict — it reinforces the need for balanced assessment, as the high and rising PEG warns of downside risk while the sector-median level provides some context.

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