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.
This content can be found on the following page:
http://www.investorwords.com/3647/peg_ratio.html
email to a friend
 print this definition
 cite this definition
 link to this page
Copy and paste this HTML in your website to link to this page
Related terms:
ratio
'PEG ratio' appears in the definitions of these other terms on BusinessDictionary.com:
price/earnings growth ratio, price to earnings growth (PEG) ratio
Related Research Articles from the InvestorGuide.com University
Stock Strategies
Learn about various strategies for investing in stocks, including the “buy and hold approach,” analyzing market timing, and estimating a company’s potential for growth.
Choosing a Stock
Which companies should I invest in? Learn how to find a company, gather the research, and do the analysis. Also gives suggestions of things to look for while conducting this process.
Fundamental Analysis
This investment strategy involves evaluating a stock by examining the company, especially its operations and its financial condition. Here we look at several valuation methods, factoring in price/earnings ratio, PEG, dividend yields, book value, price/sales ratio, and return on equity.
Related Resources from InvestorGuide.com
Stock of the Day Newsletter
Learn about stocks that are making headlines today by signing up for our free newsletter.
Stock Research Tool
Using our stock research tool, you have access to our stock tracker, quotes, interactive charts, news, analysis and profile information. Click here to use our stock research tool or enter a stock ticker here:
Featured Sponsor
|
