Latest PEG ratio for Axalta Coating Systems: -121.04 — see history and peer comparisons.
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The PEG ratio measures a stock's valuation relative to its earnings growth rate. A PEG ratio below 1.0 may indicate that the stock is undervalued relative to its growth potential.
Axalta Coating Systems posts a PEG ratio of -121.04. That is below the Materials sector average of 11.06. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Materials stocks, a PEG ratio near 11.06 is typical. Axalta Coating Systems's -121.04 is lower that level. That is roughly 1193.9% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Axalta Coating Systems's PEG ratio of -121.04 comes from dividing a price-based measure by a related financial statistic. Changes can come from the stock price moving, the underlying fundamental shifting, or both. Track both the level and the trend — a rising multiple on falling fundamentals is a different story than a rising multiple on rising earnings.
Context for AXTA's PEG ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 11.06), and (3) consistency with growth and profitability. This page covers the first two; Axalta Coating Systems's other metric pages and overview cover the third.
Judging Axalta Coating Systems against Materials peers is usually better than using a market-wide rule of thumb. Business models inside Materials are more comparable, which makes gaps in PEG ratio easier to interpret. Start with -121.04 here, then scan peer and history charts to see if the gap is persistent.