Fair IsaacFRA:FRI -0.57%87 PEG Ratio is 1.35 as of Jun. 30, 2026, which is 57% below its 10-year median of 3.11. GuruFocus rates FRA:FRI with a GF Score™ of 87/100 and a GF Value™ of €1,845.49 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 821 Software companies, Fair Isaac ranks worse than 51.16% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Fair Isaac's PE Ratio without NRI is 34.57. Fair Isaac's 5-Year EBITDA growth rate is 25.70%. Therefore, Fair Isaac's PEG Ratio for today is 1.35.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Fair Isaac's PEG Ratio or its related term are showing as below:
FRA:FRI'
s PEG Ratio Range Over the Past 10 Years
Min: 0.88 Med: 3.11 Max: 7.62
Current: 1.31
During the past 13 years, Fair Isaac's highest PEG Ratio was 7.62. The lowest was 0.88. And the median was 3.11.
FRA:FRI's PEG Ratio is ranked worse than 51.16% of 821
companies
in the Software industry
Industry Median: 1.27
vs FRA:FRI: 1.31
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Fair Isaac (FRA:FRI) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Fair Isaac PEG Ratio Related Terms
Fair Isaac PEG Ratio Historical Data
* Premium members only.
The historical data trend for Fair Isaac's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Fair Isaac's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fair Isaac PEG Ratio vs Software Industry
For the Software industry and Technology sector, Fair Isaac's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Fair Isaac's PEG Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Fair Isaac (FRA:FRI) has a PEG Ratio of 1.35 as of Jun. 30, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Fair Isaac and its competitors. This is 57% below median its historical median of 3.11. Over the past decade, Fair Isaac's PEG Ratio has ranged from 0.88 to 7.62. According to the industry distribution chart, Fair Isaac ranks #420 out of 821 companies in the Software industry, placing it in the top 51.2%.
Is Fair Isaac's PEG Ratio too high?
Fair Isaac's current PEG Ratio of 1.35 is 57% below median its 10-year median of 3.11. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 7.62. The Software industry median PEG Ratio is 1.27. Fair Isaac's value of 1.35 is 6.3% above this industry median. Based on the distribution chart, Fair Isaac ranks #420 out of 821 companies in the Software industry, which is below the industry midpoint. Overall, Fair Isaac has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fair Isaac's PEG Ratio compare to MSTR and ZM?
According to the Software industry distribution chart, Fair Isaac ranks #420 out of 821 companies for PEG Ratio. This places Fair Isaac in the lower half of its industry. The industry median PEG Ratio is 1.27. Fair Isaac's value of 1.35 is 6.3% above this benchmark. Historically, Fair Isaac's own PEG Ratio has ranged from 0.88 to 7.62 over the past decade. While the company's 10-year median is 3.11 vs. the industry median of 1.27, Fair Isaac has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.27, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fair Isaac's current PEG Ratio of 1.35 is 6.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Fair Isaac and its competitors. For the Software industry, the median PEG Ratio is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fair Isaac's current PEG Ratio is 1.35, which is 57% below median its own 10-year median of 3.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fair Isaac stock overvalued right now?
Based on GuruFocus' analysis, Fair Isaac (FRA:FRI) is currently considered Significantly Undervalued. The stock's GF Value™ is €1,845.49, compared to a current price of €1,040.00 — trading 43.6% below its estimated fair value. The current PEG Ratio is 1.35, which is 57% below median its 10-year median of 3.11 and 6.3% above the Software industry median of 1.27. Fair Isaac's overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Fair Isaac (FRA:FRI), the current PEG Ratio is 1.35 as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fair Isaac (FRA:FRI) Overvalued in 2026?
Based on GuruFocus' analysis, Fair Isaac stock appears to be undervalued.
The current stock price of €1,040.00 is trading 43.6% below its estimated GF Value™ of €1,845.49.
GuruFocus considers Fair Isaac to be Significantly Undervalued.
Key valuation signals for FRA:FRI:
PEG Ratio: 1.35 (57% below median its 10-year median of 3.11)
GF Value™: €1,845.49 vs. price of €1,040.00 (43.6% below fair value)
Industry Position: 6.3% above the Software median (#420 of 821)
No single metric tells the full story. See the FRA:FRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer. The firm's US-centric credit scores business accounts for most of the firm's revenue and profits and consists of business-to-business and business-to-consumer services. In addition to scores, Fair Isaac also sells software primarily to financial institutions for areas such as analytics, decision-making, customer workflows, and fraud.
87GF Score
Get the complete analysis for FRA:FRI
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