ZICAUTIOUS

ZI PEG Ratio Analysis

2.67x

Higher than 80% of Technology sector peers

Updated 3128h ago·SEC filings & market data

Key Takeaway

The PEG ratio combines a stock's price-to-earnings (P/E) multiple with its expected earnings growth rate—a value below 1.0x typically signals undervaluation relative to growth, while above 1.0x can indicate overvaluation.

Sector Performance

80th percentile

ZI

2.67x

Sector Median

0.85x

Sector Avg

2.53x

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Deep Analysis

The PEG ratio combines a stock's price-to-earnings (P/E) multiple with its expected earnings growth rate—a value below 1.0x typically signals undervaluation relative to growth, while above 1.0x can indicate overvaluation.

ZoomInfo's current PEG of 2.67x sits far above the Technology sector median of 0.82x, placing it in the 77th percentile among peers, meaning it is more expensive on a growth-adjusted basis than 77% of comparable companies. There is no year-over-year change, no quarter-over-quarter change, and no trend data for the last eight quarters because only a single historical value of 2.67x is available. The combination of a high PEG level with no trend direction implies a static overvaluation risk—there is no evidence of improvement or deterioration, leaving the elevated multiple as a standalone concern. This metric directly contradicts the overall BULLISH verdict, as a PEG ratio nearly 3.3 times the sector median suggests the stock's price may not be justified by its growth prospects.

Frequently Asked Questions

What does the PEG Ratio tell investors about ZI?

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.

How does ZI's PEG Ratio compare to its sector?

ZI's PEG Ratio of 2.67x compares to a Technology sector median of 0.85x, placing it in the 80th percentile.

Who are ZI's closest peers by PEG Ratio?

The closest Technology peers by PEG Ratio include: MSFT (0.85x), AVGO (0.71x), PLTR (0.60x), MRVL (0.59x), ANSS (1.12x).

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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ZI

2.67x

Sector Median

0.85x

Sector Avg

2.53x

How ZI's PEG Ratio compares to sector peers.

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