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Definition of 'PEG Payback Period'
A key ratio that is used to determine the time it would take for an investor to double their money in a stock investment. The price-to-earnings growth payback period is the time it would take for a company's earnings to equal the stock price paid by the investor. A company's PEG ratio is used rather than their price-to-earnings ratio because it is assumed that a company's earnings will grow over time.
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Investopedia explains 'PEG Payback Period'
The best reason for calculating the PEG payback period is to determine the riskiness of an investment. Generally the longer the payback period the more risky an investment becomes. This is because the payback period relies on the assesment of a company's earnings potential. It is harder to predict such potential further into the future, and subsequently there is a greater risk that those returns will not occur.
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Search results for 'PEG Payback Period'
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http://stocks.investopedia.com/stock-analysis/2010/5-Healthcare-IT-Stocks-To-Know-CERN-GE-MCK-AET-UNH0908.aspx
... an IT system hospital-wide is both expensive and time consuming and the payback
period is too ... CERN is trading at 22-times forward P/E and 1.4-times forward PEG ...
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http://www.investopedia.com/exam-guide/cfa-level-1/securities-markets/market-anomalies.asp
... the Cost of Capital; 11.10 Payback Period; 11.11 Net Present Value (NPV) and
the Internal Rate of Return (IRR); 11.12 The NPV Profile; ...
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http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/fixed-pegged-exchange.asp
... the Cost of Capital; 11.10 Payback Period; 11.11 Net Present Value (NPV) and
the Internal Rate of Return (IRR); 11.12 The NPV Profile; ...
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