Is Darden Restaurants, Inc. (DRI) Undervalued?
Based on the current stock price of $188.37 and a P/E ratio of 19.77,Darden Restaurants, Inc. has a PEG ratio of 1.84.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.84, DRI appears to be fairly valued relative to its growth rate of 10.77%.
Based on a PEG ratio of 1.42 (adjusted for dividends).
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How we analyzed DRI
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 19.77and dividing it by the annual growth rate of 10.77%.
PEG = 19.77 (P/E) ÷ 10.77 (Growth) = 1.84
Frequently Asked Questions about DRI
What is the current PEG Ratio for Darden Restaurants, Inc. (DRI)?+
The current PEG Ratio for Darden Restaurants, Inc. is 1.84. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is DRI stock undervalued right now?+
Based on the PEG ratio of 1.84, Darden Restaurants, Inc. appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for DRI?+
The PEGY ratio for Darden Restaurants, Inc. is 1.42. This metric accounts for dividend yield (3.19%), providing a more complete valuation picture.