TMO PEG Ratio Analysis
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 percentileTMO
2.87x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
2.56x(Jun 2026)
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).
Learn More About PEG Ratio
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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2.87x
Sector Median
0.97x
Sector Avg
2.92x
How TMO's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.