Hennessy Advisors (HNNA) has a PEG ratio of -35.83, below the Finance sector average of 16.75.
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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.
Hennessy Advisors posts a PEG ratio of -35.83. That is below the Finance sector average of 16.75. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Finance stocks, a PEG ratio near 16.75 is typical. Hennessy Advisors's -35.83 is lower that level. That is roughly 313.9% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Hennessy Advisors's PEG ratio of -35.83 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 HNNA's PEG ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 16.75), and (3) consistency with growth and profitability. This page covers the first two; Hennessy Advisors's other metric pages and overview cover the third.
Judging Hennessy Advisors against Finance peers is usually better than using a market-wide rule of thumb. Business models inside Finance are more comparable, which makes gaps in PEG ratio easier to interpret. Start with -35.83 here, then scan peer and history charts to see if the gap is persistent.