RMDNEUTRAL

PEG Ratio

2.04x

Updated 56h ago

Sector Performance

72th percentile

RMD

2.04x

Sector Median

0.94x

Sector Avg

3.01x

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Deep Analysis

The PEG ratio, which combines a stock’s price-to-earnings (P/E) multiple with its earnings growth rate, stands at 2.04x for RMD.

This means investors are paying about $2.04 for each dollar of expected annual earnings growth, a level that is higher than the sector median of 0.97x, placing RMD in the 72nd percentile among its sector peers. The year-over-year and quarter-over-quarter changes are both Not Available, so there is no trend data to assess direction over the past eight quarters. The elevated PEG ratio relative to peers, combined with the lack of any historical trend, suggests that while the stock is not obviously overvalued versus its growth, the absence of a declining trend offers no clear opportunity for convergence. This metric supports the overall NEUTRAL verdict because the above-average valuation is balanced by the lack of negative movement, neither strongly confirming a buy nor a sell case.

Frequently Asked Questions

What does the PEG Ratio tell investors about RMD?

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 RMD'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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RMD

2.04x

Sector Median

0.94x

Sector Avg

3.01x

How RMD's PEG Ratio compares to sector peers.

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