What does a high PEG ratio indicate?
Cfefinances
A high PEG ratio may indicate that a stock is overvalued relative to its expected earnings growth. As a rule of thumb, a PEG below 1 is considered attractive, while a PEG above 1 suggests the stock may be expensive.
Think about what a P/E looks like once you account for growth. When the PEG climbs above 1, the stock may be pricey relative to how fast it's growing.