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Price/Earnings to Growth - PEG Ratio |
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Price/Earnings to Growth - PEG Ratio A ratio used to determine a stock's value while taking into account earnings growth. The calculation is as follows:  Notes: PEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth.Keep in mind that the numbers used are projected and, therefore, can be less accurate. Also, there are many variations using earnings from different time periods (i.e. 1 year vs 5 year). Be sure to know the exact definition your source is using. |
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Price/Earnings to Growth - PEG Ratio
