RTX PEG Ratio Analysis

The PEG ratio compares a stock’s price-to-earnings multiple to its expected earnings growth rate, with 1.0x generally indicating fair value.

At 1.13x, RTX is priced slightly above that fair-value benchmark, meaning investors pay a bit more for each unit of projected growth. That level is higher than the sector median of 0.81x, placing RTX in the 58th percentile among peers—so it is costlier than most comparable companies on this growth-adjusted basis. The year-over-year change is N/A, and the quarter-over-quarter change is +9.7%, rising from 1.03x to 1.13x in the most recent two reported values. The combination of an above-median PEG and a rising quarter-over-quarter trend suggests the stock’s growth valuation is becoming less attractive relative to its sector, adding a layer of valuation risk. This metric does not contradict the overall NEUTRAL verdict, since a moderately elevated but not extreme PEG supports holding without pressing for a more bullish stance.

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