PEG Ratio

The PEG ratio (price-to-earnings divided by earnings growth) of 1.81x suggests the stock’s price is about 1.81 times higher than its annual earnings growth rate — a reading above 1.0 often indicates the market expects future growth to be strong but carries higher valuation risk.

Compared to sector peers, this ratio sits 0.84x above the sector median of 0.97x, placing VLTO in the 68th percentile, meaning it is more expensive than roughly two-thirds of its peers. The metric has been stable over the last eight quarters, with a year-over-year increase of +5.2% and a quarter-over-quarter decline of -1.6%, showing no abrupt directional shift. The combination of an elevated PEG ratio (well above the sector median) and a stable yet slightly mixed trend implies that the stock’s valuation is not compressing but remains at a premium, which can signal higher risk if growth disappoints. This elevated PEG ratio supports the overall NEUTRAL verdict, as the metric points to fair but not compelling value — the stock is not cheap enough for a bullish stance nor overpriced enough to warrant a bearish one.

Frequently Asked Questions

Closest Sector Peers