SLMNEUTRAL

SLM PEG Ratio Analysis

6.44x

Updated 101h ago·SEC filings & market data

Key Takeaway

The PEG ratio compares a stock’s price-to-earnings (P/E) multiple to its expected earnings growth rate, with a lower number suggesting better value relative to growth.

Sector Performance

92th percentile

SLM

6.44x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

5.28x(May 2026)

↓ Declining
📊

Deep Analysis

The PEG ratio compares a stock’s price-to-earnings (P/E) multiple to its expected earnings growth rate, with a lower number suggesting better value relative to growth.

At 6.44x, SLM’s PEG is well above the sector median of 0.97x, placing it in the 91st percentile among peers — meaning it is more expensive than nearly all comparable companies when accounting for growth. Year-over-year change is not available, but the ratio rose 22.0% quarter-over-quarter from 5.28x to 6.44x, indicating a sharp increase in valuation relative to expected earnings growth over the last three months. This combination of a very high level and a rising trend points to increased risk: the stock has become more costly relative to its growth prospects, potentially limiting upside or amplifying downside if growth disappoints. The elevated and climbing PEG ratio contradicts a bullish stance and supports the overall NEUTRAL verdict by flagging a cautionary valuation concern that keeps the stock from appearing attractively priced.

Frequently Asked Questions

What does the PEG Ratio tell investors about SLM?

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 SLM's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).

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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SLM

6.44x

Sector Median

0.97x

Sector Avg

2.92x

How SLM's PEG Ratio compares to sector peers.

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