UNP PEG Ratio Analysis

The PEG ratio of 4.02x is the price/earnings-to-growth ratio, meaning the stock’s price-to-earnings multiple is 4.02 times its expected earnings growth rate; a higher PEG indicates a higher price for each unit of growth.

This sits far above the sector median of 0.81x and ranks in the 87th percentile among sector peers, so the stock is considerably more expensive on this basis than most comparable companies. The trend over the last eight quarters is decreasing: the current value is down 23.1% year-over-year but up 5.5% quarter-over-quarter. The high absolute level signals elevated valuation risk, while the yearly decline suggests that risk has lessened from prior levels, though the quarterly increase tempers that improvement. Because the metric remains expensive but is trending lower, it aligns with the overall NEUTRAL verdict without contradicting it.

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