PEG Ratio

The PEG ratio—price-to-earnings divided by earnings growth—of 35.22x means the stock trades at 35 times its earnings for every 1% of expected growth, a very high multiple that signals investors are pricing in aggressive future expansion.

This sits far above the sector median of 0.97x, placing VRSK in the 100th percentile among peers, meaning it is the most expensive stock on this growth-adjusted basis. Over the last eight quarters the metric has been stable, with a year-over-year increase of 6.7% and a quarter-over-quarter decline of 0.9%, showing no clear shift despite the high level. The combination of an extremely elevated PEG ratio and a stable trend implies above-average valuation risk, as the current price already reflects optimistic growth assumptions that leave little room for error. This metric contradicts the overall NEUTRAL verdict, because such a high PEG—especially relative to the near-1.0x sector median—typically indicates overvaluation and higher downside risk, rather than a balanced risk-reward profile.

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