PEG ratio Definition

PEG ratio

Definition

A stock's price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.

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PEG ratio is ...
... part of the Earnings, Stocks and Investor Relations subjects.

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PEG ratio appears in the definitions of these other terms on BusinessDictionary.com

price to earnings growth (PEG) ratio