PEG Ratio

The PEG ratio (price-to-earnings divided by earnings growth rate) of 5.06x means the stock is priced at over five times its projected earnings growth, signaling a high valuation relative to expected gains.

This is far above the sector median of 0.92x and places UNP in the 90th percentile among sector peers, indicating it is more expensive than 90% of comparable companies. The year-over-year change is not available, but the quarter-over-quarter increase of +10.2% shows the PEG ratio has risen notably in the last three months. A very high PEG ratio that is also trending upward suggests elevated valuation risk, as investors are paying more for each unit of growth compared to both the sector and recent history. This combination implies limited upside potential and increased downside risk if growth expectations are not met. The metric clearly supports the overall NEUTRAL verdict by highlighting a stretched valuation that warrants caution rather than a bullish or bearish bias.

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