Penske Automotive Group (PAG) has a PEG ratio of 389.16, above the Consumer Discretionary sector average of 3.92.
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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.
Penske Automotive Group posts a PEG ratio of 389.16. That is above the Consumer Discretionary sector average of 3.92. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Consumer Discretionary stocks, a PEG ratio near 3.92 is typical. Penske Automotive Group's 389.16 is higher that level. That is roughly 9822.8% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Penske Automotive Group's PEG ratio of 389.16 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 PAG's PEG ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 3.92), and (3) consistency with growth and profitability. This page covers the first two; Penske Automotive Group's other metric pages and overview cover the third.
Judging Penske Automotive Group against Consumer Discretionary peers is usually better than using a market-wide rule of thumb. Business models inside Consumer Discretionary are more comparable, which makes gaps in PEG ratio easier to interpret. Start with 389.16 here, then scan peer and history charts to see if the gap is persistent.