The Descartes Systems GroupSTU:DC2 -0.55%92 PEG Ratio is 1.89 as of Jul. 04, 2026, which is 46% below its 10-year median of 3.53. GuruFocus rates STU:DC2 with a GF Score™ of 92/100 and a GF Value™ of €100.46 (Significantly Undervalued). Among 821 Software companies, The Descartes Systems Group ranks worse than 65.9% 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 The Descartes Systems Group's PEG Ratio or its related term are showing as below:
STU:DC2'
s PEG Ratio Range Over the Past 10 Years
Min: 1.8 Med: 3.53 Max: 7.09
Current: 1.91
During the past 13 years, The Descartes Systems Group's highest PEG Ratio was 7.09. The lowest was 1.80. And the median was 3.53.
STU:DC2's PEG Ratio is ranked worse than 65.9% of 821
companies
in the Software industry
Industry Median: 1.29
vs STU:DC2: 1.91
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
The Descartes Systems Group (STU:DC2) 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.
The Descartes Systems Group PEG Ratio Related Terms
The Descartes Systems Group PEG Ratio Historical Data
* 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, The Descartes Systems 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.
The Descartes Systems Group PEG Ratio vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's PEG Ratio distribution charts can be found below:
* The bar in red indicates where The Descartes Systems 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.
The Descartes Systems Group (STU:DC2) has a PEG Ratio of 1.89 as of Jul. 04, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on The Descartes Systems Group and its competitors. This is 46% below median its historical median of 3.53. Over the past decade, The Descartes Systems Group's PEG Ratio has ranged from 1.80 to 7.09. According to the industry distribution chart, The Descartes Systems Group ranks #541 out of 821 companies in the Software industry, placing it in the top 65.9%.
Is The Descartes Systems Group's PEG Ratio too high?
The Descartes Systems Group's current PEG Ratio of 1.89 is 46% below median its 10-year median of 3.53. Over the past 10 years, this metric has ranged from a low of 1.80 to a high of 7.09. The Software industry median PEG Ratio is 1.29. The Descartes Systems Group's value of 1.89 is 46.5% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #541 out of 821 companies in the Software industry, which is below the industry midpoint. Overall, The Descartes Systems Group has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's PEG Ratio compare to UBER and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #541 out of 821 companies for PEG Ratio. This places The Descartes Systems Group in the lower half of its industry. The industry median PEG Ratio is 1.29. The Descartes Systems Group's value of 1.89 is 46.5% above this benchmark. Historically, The Descartes Systems Group's own PEG Ratio has ranged from 1.80 to 7.09 over the past decade. While the company's 10-year median is 3.53 vs. the industry median of 1.29, The Descartes Systems 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 Software company?
The median PEG Ratio among Software companies is 1.29, 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. The Descartes Systems Group's current PEG Ratio of 1.89 is 46.5% 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 The Descartes Systems Group and its competitors. For the Software industry, the median PEG Ratio is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current PEG Ratio is 1.89, which is 46% below median its own 10-year median of 3.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Descartes Systems Group stock overvalued right now?
Based on GuruFocus' analysis, The Descartes Systems Group (STU:DC2) is currently considered Significantly Undervalued. The stock's GF Value™ is €100.46, compared to a current price of €63.25 — trading 37% below its estimated fair value. The current PEG Ratio is 1.89, which is 46% below median its 10-year median of 3.53 and 46.5% above the Software industry median of 1.29. The Descartes Systems Group's overall GF Score™ is 92/100. 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 The Descartes Systems Group (STU:DC2), the current PEG Ratio is 1.89 as of Jul. 04, 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 The Descartes Systems Group (STU:DC2) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of €63.25 is trading 37% below its estimated GF Value™ of €100.46.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for STU:DC2:
PEG Ratio: 1.89 (46% below median its 10-year median of 3.53)
GF Value™: €100.46 vs. price of €63.25 (37% below fair value)
Industry Position: 46.5% above the Software median (#541 of 821)
No single metric tells the full story. See the STU:DC2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
92GF Score
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