Air Products and Chemicals, Inc. PEG Ratio
Data as of June 01, 2026
PEG Ratio
2.26
PE Ratio (TTM)
29.33
EPS (TTM)
$9.50
Sector
Basic Materials
How It's Calculated
2.26 = 29.33 ÷ Growth Rate
What This Means
Air Products and Chemicals, Inc.'s PEG ratio of 2.26 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.
About Air Products and Chemicals, Inc.
Air Products and Chemicals, Inc. (APD) operates in the Basic Materials sector, specifically in Specialty Chemicals. With a market capitalization of about $62.04B, it ranks as a large-cap stock โ a major established company.
Shares recently traded near $278.62, within a 52-week range of $229.11 to $307.96 (-9.5% from the high, +21.6% from the low). Beta of 0.78 indicates relatively lower volatility versus the market.
Trailing profit margin is about 16.9%, signaling a solid profit margin for its industry.
Understanding This Metric
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Air Products and Chemicals, Inc., a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Basic Materials names on our S&P 100 coverage, Air Products and Chemicals, Inc.'s PEG ratio of 2.26 can be compared with peers such as LIN (2.32), SHW (2.35), DOW (38.89). Sector context helps interpretation, but each company's growth profile and balance sheet differ โ use multiple metrics before drawing conclusions. View all Basic Materials stocks.
Key Takeaways
- APD is grouped in the Basic Materials sector for peer comparisons.
- Recent beta of 0.78 suggests lower-than-market price sensitivity.
- Trailing profit margin of 16.9% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for APD.
Other APD Metrics
Frequently Asked Questions
What is APD's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG โ PE รท earnings growth rate. Air Products and Chemicals, Inc.'s PEG of 2.26 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (2.26) may mean the market prices in high growth โ or that growth estimates lag reality.
What are limitations of PEG for APD?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Basic Materials peers โ not as a standalone verdict.
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