TXTNEUTRAL

TXT PEG Ratio Analysis

14.42x

Updated 57h ago·SEC filings & market data

Key Takeaway

The PEG ratio (price-to-earnings divided by earnings growth rate) measures how much investors pay for each unit of expected profit growth; at 14.42x, TXT’s price growth multiple is very high.

Sector Performance

97th percentile

TXT

14.42x

Sector Median

0.77x

Sector Avg

2.65x

Prior Period

2.78x(Jul 2026)

↓ Declining
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Deep Analysis

The PEG ratio (price-to-earnings divided by earnings growth rate) measures how much investors pay for each unit of expected profit growth; at 14.42x, TXT’s price growth multiple is very high.

That compares unfavorably to the sector median of 0.90x, placing TXT in the 97th percentile among peers. The trend is not fully trackable: the year-over-year change is N/A, but the quarter-over-quarter change is +418.7%, while the only two historical values listed are 14.42x and 2.78x (most recent first). This combination of an elevated level and a sharp quarterly spike suggests investors are pricing in very high growth expectations that TXT must meet to justify the valuation, raising downside risk if those expectations weaken. The absence of a longer trend limits confidence in the shift, but the jump alone signals increased sensitivity to earnings news. On balance, the metric supports the overall NEUTRAL verdict: the rich PEG implies limited margin for error, but it is not by itself a sell signal.

Frequently Asked Questions

What does the PEG Ratio tell investors about TXT?

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 TXT's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: FORM (0.49x), HII (0.48x), CPRI (0.47x), CBOE (0.46x), CELH (0.46x).

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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TXT

14.42x

Sector Median

0.77x

Sector Avg

2.65x

How TXT's PEG Ratio compares to sector peers.

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