The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine ...

To calculate a stock's PEG ratio you must first figure out its P/E ratio. The P/E ratio is calculated by dividing the per-share market value by its per-share earnings. From here, the formula for ...

Tip: There are online calculators that help determine the PEG ratio of a company. The formula for calculating the PEG ratio is simple. Just divide the price/earnings ratio by the current (or ...

since it's a component of the PEG's formula. While there are advantages to using PEG over P/E, investors should also be aware of the PEG ratio's limitations. A single ratio alone can't give ...

Understanding the PEG ratio begins with its formula, which is elegantly simple yet profoundly informative. Here, the P/E Ratio represents how much investors are willing to pay for each dollar of ...

Note: You might see different PEG ratios for the same company, depending on how the inputs for the formula were determined. For example, if you calculate the PEG ratio of a company using a ...

Growth at a reasonable price is your target. Compare a PE (price/earnings) to a G (growth rate) and you get PEG, the classic formula for measuring the price tag on a growth stock. But PEG has deep ...

The PEG ratio is a valuation metric investors use to assess if a stock is fairly valued, undervalued or overvalued. A lower PEG ratio is better for a company's valuation, but investors should use ...

and investors should be familiar with how the PEG ratio formula works. However, there are drawbacks to using the metric. Like any of the popular valuation ratios, it shouldn't be used as a one-off ...

Commissions do not affect our editors' opinions or evaluations. The price/earnings-to-growth ratio, or the PEG ratio, is a metric that helps investors value a stock by taking into account a ...