SOFICAUTIOUS

PEG Ratio

0.28x

Higher than 50% of Financial Services sector peers

Updated 31h ago

Sector Performance

50th percentile

SOFI

0.28x

Sector Median

0.28x

Sector Avg

2.10x

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Deep Analysis

A PEG ratio of 0.28x means SoFi’s stock price is low relative to its expected earnings growth — the Price-to-Earnings ratio divided by the earnings growth rate; a value below 1.0 often suggests the stock may be undervalued.

Among Financial Services peers, SoFi’s 0.28x sits below the sector median of 0.34x, putting it at the 48th percentile — just slightly cheaper than half of its competitors. The metric has been stable over the past eight quarters, with a year-over-year increase of 12.0% but a quarter-over-quarter decline of 3.4%. The combination of a low PEG ratio and a stable trend without clear upward momentum points to a possible valuation opportunity, yet the recent quarterly dip tempers that potential. This metric partially supports the overall CAUTIOUS verdict: the low PEG suggests the stock is not expensive, but the lack of a sustained improvement and the slight QoQ decrease reinforce caution rather than confidence.

Frequently Asked Questions

What does the PEG Ratio tell investors about SOFI?

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.

How does SOFI's PEG Ratio compare to its sector?

SOFI's PEG Ratio of 0.28x compares to a Financial Services sector median of 0.28x, placing it in the 50th percentile.

Who are SOFI's closest peers by PEG Ratio?

The closest Financial Services peers by PEG Ratio include: ARES (0.27x), AMP (0.19x), ITUB (0.18x), NU (0.39x), AIZ (0.13x).

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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SOFI

0.28x

Sector Median

0.28x

Sector Avg

2.10x

How SOFI's PEG Ratio compares to sector peers.

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