Duck Creek Technologies (DCT) has a PEG ratio of 35.64, above the Technology sector average of 12.49.
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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.
Duck Creek Technologies posts a PEG ratio of 35.64. That is above the Technology sector average of 12.49. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Technology stocks, a PEG ratio near 12.49 is typical. Duck Creek Technologies's 35.64 is higher that level. That is roughly 185.4% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Duck Creek Technologies's PEG ratio of 35.64 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 DCT's PEG ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 12.49), and (3) consistency with growth and profitability. This page covers the first two; Duck Creek Technologies's other metric pages and overview cover the third.
Judging Duck Creek Technologies against Technology peers is usually better than using a market-wide rule of thumb. Business models inside Technology are more comparable, which makes gaps in PEG ratio easier to interpret. Start with 35.64 here, then scan peer and history charts to see if the gap is persistent.