Headwaters CoTSE:4011 +2.92%75 PEG Ratio is 3.64 as of Jul. 12, 2026, which is 90% below its 10-year median of 36.81. GuruFocus rates TSE:4011 with a GF Score™ of 75/100 and a GF Value™ of 円8,071.98 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 817 Software companies, Headwaters Co ranks worse than 81.64% 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 Headwaters Co's PEG Ratio or its related term are showing as below:
TSE:4011'
s PEG Ratio Range Over the Past 10 Years
Min: 3.64 Med: 36.81 Max: 108.92
Current: 3.64
During the past 8 years, Headwaters Co's highest PEG Ratio was 108.92. The lowest was 3.64. And the median was 36.81.
TSE:4011's PEG Ratio is ranked worse than 81.64% of 817
companies
in the Software industry
Industry Median: 1.32
vs TSE:4011: 3.64
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Headwaters Co (TSE:4011) 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.
Headwaters Co PEG Ratio Related Terms
Headwaters Co PEG Ratio Historical Data
* Premium members only.
The historical data trend for Headwaters Co'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, Headwaters Co'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.
Headwaters Co PEG Ratio vs Software Industry
For the Software industry and Technology sector, Headwaters Co's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Headwaters Co'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.
Headwaters Co (TSE:4011) has a PEG Ratio of 3.64 as of Jul. 12, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Headwaters Co and its competitors. This is 90% below median its historical median of 36.81. Over the past decade, Headwaters Co's PEG Ratio has ranged from 3.64 to 108.92. According to the industry distribution chart, Headwaters Co ranks #667 out of 817 companies in the Software industry, placing it in the top 81.6%.
Is Headwaters Co's PEG Ratio too high?
Headwaters Co's current PEG Ratio of 3.64 is 90% below median its 10-year median of 36.81. Over the past 10 years, this metric has ranged from a low of 3.64 to a high of 108.92. The Software industry median PEG Ratio is 1.32. Headwaters Co's value of 3.64 is 175.8% above this industry median. Based on the distribution chart, Headwaters Co ranks #667 out of 817 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Headwaters Co has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Headwaters Co's PEG Ratio compare to UBER and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #667 out of 817 companies for PEG Ratio. This places Headwaters Co in the lower half of its industry. The industry median PEG Ratio is 1.32. Headwaters Co's value of 3.64 is 175.8% above this benchmark. Historically, Headwaters Co's own PEG Ratio has ranged from 3.64 to 108.92 over the past decade. While the company's 10-year median is 36.81 vs. the industry median of 1.32, Headwaters Co 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 1.32, based on 817 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. Headwaters Co's current PEG Ratio of 3.64 is 175.8% 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 Headwaters Co and its competitors. For the Software industry, the median PEG Ratio is 1.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current PEG Ratio is 3.64, which is 90% below median its own 10-year median of 36.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Headwaters Co stock overvalued right now?
Based on GuruFocus' analysis, Headwaters Co (TSE:4011) is currently considered Possible Value Trap. The stock's GF Value™ is 円8,071.98, compared to a current price of 円2,117.00 — trading 73.8% below its estimated fair value. The current PEG Ratio is 3.64, which is 90% below median its 10-year median of 36.81 and 175.8% above the Software industry median of 1.32. Headwaters Co's overall GF Score™ is 75/100 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 Headwaters Co (TSE:4011), the current PEG Ratio is 3.64 as of Jul. 12, 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 Headwaters Co (TSE:4011) Overvalued in 2026?
Based on GuruFocus' analysis, Headwaters Co stock appears to be undervalued.
The current stock price of 円2,117.00 is trading 73.8% below its estimated GF Value™ of 円8,071.98.
GuruFocus considers Headwaters Co to be Possible Value Trap.
Key valuation signals for TSE:4011:
PEG Ratio: 3.64 (90% below median its 10-year median of 36.81)
GF Value™: 円8,071.98 vs. price of 円2,117.00 (73.8% below fair value)
Industry Position: 175.8% above the Software median (#667 of 817)
No single metric tells the full story. See the TSE:4011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Headwaters Co Ltd is engaged in the planning and development of artificial intelligence (AI) applications. It develops AI-related businesses such as AI platform operation, AI application development, robot application development, and cloud service operation. The group has a single segment, the AI solutions business.
75GF Score
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