Terminix Global Holdings (TMX) has a PEG ratio of -5.1, below the Consumer Discretionary sector average of -1.46.
Get informed when a big investor buys or sells
+ Follow-5.10
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.
Terminix Global Holdings posts a PEG ratio of -5.1. That is below the Consumer Discretionary sector average of -1.46. 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 -1.46 is typical. Terminix Global Holdings's -5.1 is lower that level. That is roughly 249.8% below the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Terminix Global Holdings's PEG ratio of -5.1 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 TMX's PEG ratio usually means three checks: (1) trend versus prior periods, (2) level versus peers (average -1.46), and (3) consistency with growth and profitability. This page covers the first two; Terminix Global Holdings's other metric pages and overview cover the third.
Judging Terminix Global Holdings 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 -5.1 here, then scan peer and history charts to see if the gap is persistent.