PEG Ratio
Updated 125h ago
Sector Performance
53th percentileRTX
1.03x
Sector Median
0.94x
Sector Avg
3.03x
Deep Analysis
The PEG ratio, or price/earnings-to-growth ratio, divides a company's price-to-earnings (P/E) multiple by its expected earnings growth rate; a value of 1.0x is often considered fairly priced.
RTX's current PEG of 1.03x sits just above the sector median of 0.97x, placing it at the 53rd percentile among peers — slightly pricier than half the sector but still close to the middle. Year-over-year data is not available, but the ratio has decreased by 5.5% quarter-over-quarter, from 1.09x to 1.03x, based on the two most recent historical values. The level near the sector median combined with a modest quarterly decline suggests limited immediate mispricing, with a slight shift toward cheaper valuation relative to growth expectations. This metric supports the overall NEUTRAL verdict by showing neither a clear undervaluation nor overvaluation, aligning with a balanced risk-opportunity profile.
Frequently Asked Questions
What does the PEG Ratio tell investors about RTX?
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 RTX's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: NUE (0.06x), VLO (0.06x), NKE (0.05x), NCLH (0.05x), MKTX (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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1.03x
Sector Median
0.94x
Sector Avg
3.03x
How RTX's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.