TMONEUTRAL

TMO PEG Ratio Analysis

2.87x

Updated 245h ago·SEC filings & market data

Key Takeaway

The PEG Ratio combines the price-to-earnings (P/E) ratio with expected earnings growth, so a lower number typically suggests better value for the growth rate.

Sector Performance

83th percentile

TMO

2.87x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

2.56x(Jun 2026)

↓ Declining
📊

Deep Analysis

The PEG Ratio combines the price-to-earnings (P/E) ratio with expected earnings growth, so a lower number typically suggests better value for the growth rate.

At 2.87x, the stock trades at a premium relative to its sector median of 0.94x, ranking in the 81st percentile among peers — meaning it is more expensive than most. The year-over-year change is not available, but the quarter-over-quarter change is +12.1%, indicating a recent increase in the multiple. While the elevated level alone signals a higher valuation risk, the upward quarterly trend could reflect either improving growth expectations or rising market optimism. This combination of a high level and a rising trend may point to limited near-term margin of safety if growth disappoints. However, the metric does not directly contradict the overall NEUTRAL verdict, as a single elevated PEG is balanced by other factors in the stock’s assessment.

Frequently Asked Questions

What does the PEG Ratio tell investors about TMO?

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 TMO'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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TMO

2.87x

Sector Median

0.97x

Sector Avg

2.92x

How TMO's PEG Ratio compares to sector peers.

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