Serco GroupSCGPY 81 PEG Ratio is 1.27 as of Jun. 26, 2026, which is 234% above its 10-year median of 0.38. GuruFocus rates SCGPY with a GF Score™ of 81/100 and a GF Value™ of $3.02. The stock has 3 warning signs investors should review. Among 447 Business Services companies, Serco Group ranks worse than 56.82% 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, Serco Group's PE Ratio without NRI is 12.40. Serco Group's 5-Year EBITDA growth rate is 9.80%. Therefore, Serco Group's PEG Ratio for today is 1.27.
* 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 Serco Group's PEG Ratio or its related term are showing as below:
SCGPY'
s PEG Ratio Range Over the Past 10 Years
Min: 0.2 Med: 0.38 Max: 1.94
Current: 1.27
During the past 13 years, Serco Group's highest PEG Ratio was 1.94. The lowest was 0.20. And the median was 0.38.
SCGPY's PEG Ratio is ranked worse than 56.82% of 447
companies
in the Business Services industry
Industry Median: 1.18
vs SCGPY: 1.27
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Serco Group (OTCPK:SCGPY) 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.
Serco Group PEG Ratio Related Terms
Serco Group PEG Ratio Historical Data
* Premium members only.
The historical data trend for Serco Group'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 Specialty Business Services subindustry, Serco Group'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.
Serco Group PEG Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Serco Group'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.
Serco Group (SCGPY) has a PEG Ratio of 1.27 as of Jun. 26, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Serco Group and its competitors. This is 234% above median its historical median of 0.38. Over the past decade, Serco Group's PEG Ratio has ranged from 0.20 to 1.94. According to the industry distribution chart, Serco Group ranks #254 out of 447 companies in the Business Services industry, placing it in the top 56.8%.
Is Serco Group's PEG Ratio too high?
Serco Group's current PEG Ratio of 1.27 is 234% above median its 10-year median of 0.38. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 1.94. The Business Services industry median PEG Ratio is 1.18. Serco Group's value of 1.27 is 7.6% above this industry median. Based on the distribution chart, Serco Group ranks #254 out of 447 companies in the Business Services industry, which is below the industry midpoint. Overall, Serco Group has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Serco Group's PEG Ratio compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #254 out of 447 companies for PEG Ratio. This places Serco Group in the lower half of its industry. The industry median PEG Ratio is 1.18. Serco Group's value of 1.27 is 7.6% above this benchmark. Historically, Serco Group's own PEG Ratio has ranged from 0.20 to 1.94 over the past decade. While the company's 10-year median is 0.38 vs. the industry median of 1.18, Serco Group 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 Business Services company?
The median PEG Ratio among Business Services companies is 1.18, based on 447 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. Serco Group's current PEG Ratio of 1.27 is 7.6% 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 Serco Group and its competitors. For the Business Services industry, the median PEG Ratio is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current PEG Ratio is 1.27, which is 234% above median its own 10-year median of 0.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serco Group stock overvalued right now?
Serco Group (SCGPY) has a current PEG Ratio of 1.27. The stock's GF Value™ is $3.02, compared to a current price of $2.83 — trading 6.4% below its estimated fair value. The current PEG Ratio is 1.27, which is 234% above median its 10-year median of 0.38 and 7.6% above the Business Services industry median of 1.18. Serco Group's overall GF Score™ is 81/100 with 3 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 Serco Group (SCGPY), the current PEG Ratio is 1.27 as of Jun. 26, 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 Serco Group (SCGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Serco Group stock appears to be undervalued.
The current stock price of $2.83 is trading 6.4% below its estimated GF Value™ of $3.02.
Key valuation signals for SCGPY:
PEG Ratio: 1.27 (234% above median its 10-year median of 0.38)
GF Value™: $3.02 vs. price of $2.83 (6.4% below fair value)
Industry Position: 7.6% above the Business Services median (#254 of 447)
No single metric tells the full story. See the SCGPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serco Group PLC helps governments and public-sector bodies deliver public services. The company generates revenue from four divisions; the UK & Europe division provides hospital management, welfare, business support operations, and defense services in the U.K. and Europe. The North America division provides professional, defense, technology, and management services to the U.S. and Canadian governments. The Asia-Pacific segment provides frontline services, defense, and citizen services in Australia, New Zealand, and Hong Kong. The Middle East division provides transport, defense, and health services in the Middle East. The company generates its key revenue from the U.K. & Europe divisions.
81GF Score
Get the complete analysis for SCGPY
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