Price to earnings growth (PEG) ratio

Price to earnings growth (PEG) ratio,

Definition of Price to earnings growth (PEG) ratio:

  1. Indicates the value stockmarket analysts and investors put on a firms earning expectations compared to what it had earned in the past, and is used to discover stocks that have high growth potential but are trading at a discount. A PEG ratio of 1 is considered a sign of good value. Formula: Stocks projected PE ratio ÷ Stocks projected EPS growth rate.

Meaning of Price to earnings growth (PEG) ratio & Price to earnings growth (PEG) ratio Definition