Penguin SolutionsPENG -3.32%71 PEG Ratio is 2.09 as of Jun. 25, 2026, which is 34% above its 10-year median of 1.56. GuruFocus rates PENG with a GF Score™ of 71/100 and a GF Value™ of $23.82 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 821 Software companies, Penguin Solutions ranks worse than 68.82% on this metric.
* 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 Penguin Solutions's PEG Ratio or its related term are showing as below:
PENG'
s PEG Ratio Range Over the Past 10 Years
Min: 0.68 Med: 1.56 Max: 12.27
Current: 2.09
During the past 11 years, Penguin Solutions's highest PEG Ratio was 12.27. The lowest was 0.68. And the median was 1.56.
PENG's PEG Ratio is ranked worse than 68.82% of 821
companies
in the Software industry
Industry Median: 1.27
vs PENG: 2.09
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Penguin Solutions (NAS:PENG) 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.
Penguin Solutions PEG Ratio Related Terms
Penguin Solutions PEG Ratio Historical Data
* Premium members only.
The historical data trend for Penguin Solutions'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 Information Technology Services subindustry, Penguin Solutions'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.
Penguin Solutions PEG Ratio vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Penguin Solutions'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.
Penguin Solutions (PENG) has a PEG Ratio of 2.09 as of Jun. 25, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Penguin Solutions and its competitors. This is 34% above median its historical median of 1.56. Over the past decade, Penguin Solutions' PEG Ratio has ranged from 0.68 to 12.27. According to the industry distribution chart, Penguin Solutions ranks #565 out of 821 companies in the Software industry, placing it in the top 68.8%.
Is Penguin Solutions' PEG Ratio too high?
Penguin Solutions' current PEG Ratio of 2.09 is 34% above median its 10-year median of 1.56. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 12.27. The Software industry median PEG Ratio is 1.27. Penguin Solutions' value of 2.09 is 64.6% above this industry median. Based on the distribution chart, Penguin Solutions ranks #565 out of 821 companies in the Software industry, which is below the industry midpoint. Overall, Penguin Solutions has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' PEG Ratio compare to VNET and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #565 out of 821 companies for PEG Ratio. This places Penguin Solutions in the lower half of its industry. The industry median PEG Ratio is 1.27. Penguin Solutions' value of 2.09 is 64.6% above this benchmark. Historically, Penguin Solutions' own PEG Ratio has ranged from 0.68 to 12.27 over the past decade. While the company's 10-year median is 1.56 vs. the industry median of 1.27, Penguin Solutions 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. Penguin Solutions's current PEG Ratio of 2.09 is 64.6% 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 Penguin Solutions 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. Penguin Solutions's current PEG Ratio is 2.09, which is 34% above median its own 10-year median of 1.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penguin Solutions stock overvalued right now?
Based on GuruFocus' analysis, Penguin Solutions (PENG) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.82, compared to a current price of $64.72 — trading 171.7% above its estimated fair value. The current PEG Ratio is 2.09, which is 34% above median its 10-year median of 1.56 and 64.6% above the Software industry median of 1.27. Penguin Solutions' overall GF Score™ is 71/100 with 5 warning signs 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 Penguin Solutions (PENG), the current PEG Ratio is 2.09 as of Jun. 25, 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 Penguin Solutions (PENG) Overvalued in 2026?
Based on GuruFocus' analysis, Penguin Solutions stock appears to be overvalued.
The current stock price of $64.72 is trading 171.7% above its estimated GF Value™ of $23.82.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
PEG Ratio: 2.09 (34% above median its 10-year median of 1.56)
GF Value™: $23.82 vs. price of $64.72 (171.7% above fair value)
Industry Position: 64.6% above the Software median (#565 of 821)
No single metric tells the full story. See the PENG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.
71GF Score
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