Penguin SolutionsPENG -3.32%71 PE Ratio (TTM) is 89.88 as of Jun. 25, 2026, which is 151% above its 10-year median of 35.81. 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 1,638 Software companies, Penguin Solutions ranks worse than 87.79% on this metric.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-06-25), Penguin Solutions's share price is
$64.715.
Penguin Solutions's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Feb. 2026 was $0.72. Therefore, Penguin Solutions's PE Ratio (TTM) for today is 89.88.
The historical rank and industry rank for Penguin Solutions's PE Ratio (TTM) or its related term are showing as below:
PENG'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: 3.91 Med: 35.81 Max: 159.34
Current: 89.88
During the past 11 years, the highest PE Ratio (TTM) of Penguin Solutions was 159.34. The lowest was 3.91. And the median was 35.81.
PENG's PE Ratio (TTM) is ranked worse than 87.79% of 1638
companies
in the Software industry
Industry Median: 20.335
vs PENG: 89.88
During the past 12 months, Penguin Solutions's average EPS without NRIGrowth Rate was 9.10% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was -19.30% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was -1.90% per year.
During the past 11 years, Penguin Solutions's highest 3-Year average EPS without NRI Growth Rate was 29.40% per year. The lowest was -21.80% per year. And the median was -0.90% per year.
Penguin Solutions's EPS (Basic) for the
three
months ended in Feb. 2026 was $0.59.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Feb. 2026 was $0.73.
Penguin Solutions (NAS:PENG) PE Ratio (TTM) Explanation
The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).
Penguin Solutions PE Ratio (TTM) Related Terms
Penguin Solutions PE Ratio (TTM) Historical Data
* Premium members only.
The historical data trend for Penguin Solutions's PE Ratio (TTM) 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 PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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 PE Ratio (TTM) vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's PE Ratio (TTM) falls into.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Penguin Solutions's Share Price of today is $64.715.
Penguin Solutions's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.72.
* 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.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Penguin Solutions (PENG) has a PE Ratio (TTM) of 89.88 as of Jun. 25, 2026. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Penguin Solutions and its competitors. This is 151% above median its historical median of 35.81. Over the past decade, Penguin Solutions' PE Ratio (TTM) has ranged from 3.91 to 159.34. According to the industry distribution chart, Penguin Solutions ranks #1438 out of 1638 companies in the Software industry, placing it in the top 87.8%.
Is Penguin Solutions' PE Ratio (TTM) too high?
Penguin Solutions' current PE Ratio (TTM) of 89.88 is 151% above median its 10-year median of 35.81. Over the past 10 years, this metric has ranged from a low of 3.91 to a high of 159.34. The Software industry median PE Ratio (TTM) is 20.34. Penguin Solutions' value of 89.88 is 342% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1438 out of 1638 companies in the Software industry, which is in the bottom quartile relative to peers. 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' PE Ratio (TTM) compare to VNET and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #1438 out of 1638 companies for PE Ratio (TTM). This places Penguin Solutions in the lower half of its industry. The industry median PE Ratio (TTM) is 20.34. Penguin Solutions' value of 89.88 is 342% above this benchmark. Historically, Penguin Solutions' own PE Ratio (TTM) has ranged from 3.91 to 159.34 over the past decade. While the company's 10-year median is 35.81 vs. the industry median of 20.34, 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 PE Ratio (TTM) for a Software company?
The median PE Ratio (TTM) among Software companies is 20.34, based on 1,638 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio (TTM) significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current PE Ratio (TTM) of 89.88 is 342% 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 PE Ratio (TTM) mean?
A high PE Ratio (TTM) can signal that a stock is expensive relative to its fundamentals. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on Penguin Solutions and its competitors. For the Software industry, the median PE Ratio (TTM) is 20.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current PE Ratio (TTM) is 89.88, which is 151% above median its own 10-year median of 35.81. 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 PE Ratio (TTM) is 89.88, which is 151% above median its 10-year median of 35.81 and 342% above the Software industry median of 20.34. 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 PE Ratio (TTM) calculated?
PE Ratio (TTM) is calculated from a company's financial statements. For Penguin Solutions (PENG), the current PE Ratio (TTM) is 89.88 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:
PE Ratio (TTM): 89.88 (151% above median its 10-year median of 35.81)
GF Value™: $23.82 vs. price of $64.72 (171.7% above fair value)
Industry Position: 342% above the Software median (#1438 of 1638)
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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