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 pricetoearnings 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 pricetoearnings ratio because it is assumed that a company's earnings will grow over time.
BREAKING DOWN '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.

Payback Period
The length of time required to recover the cost of an investment. ... 
Discounted Payback Period
A capital budgeting procedure used to determine the profitability ... 
Exclusion Ratio
The portion of the return on investments that is income tax exempt. ... 
Price/Earnings To Growth  PEG ...
Price/Earnings to Growth (PEG) is a stock's price to earnings ... 
Net Present Value  NPV
Net Present Value (NPV) is the difference between the present ... 
Implied Call
A right given to mortgage borrowers that allows them to call ...

Investing
Payback Period
Payback period is the time it takes for an investment to generate an amount of income or cash equal to the cost of the investment. The shorter the payback period, the better the investment is ... 
Investing
Understanding The Discounted Payback Period
It’s similar to a simple payback, but a discounted payback period accounts for money’s time value. It’s a more precise estimate of when investors will recover their total investment. 
Trading
Advantages of the PEG Ratio over the P/E Ratio
Earnings are critical to any company’s future prospects, but other factors are important, too. 
Trading
How To Use The P/E Ratio And PEG To Tell A Stock's Future
While the pricetoearnings ratio is commonly used for assessing stock prices, the price/earningstogrowth ratio offers forecasting advantages that investors need to know. 
Investing
PEG Ratio Nails Down Value Stocks
Learn how this simple calculation can help you determine a stock's earnings potential. 
Investing
PEG Ratio
Learn more about how this ratio is used to determine a stock's value based on its earnings growth. 
Investing
The 4 Basic Elements Of Stock Value
Investors use these four measures to determine a stock's worth. Find out how to use them. 
Investing
How To Find P/E And PEG Ratios
If these numbers have you in the dark, these easy calculations should help light the way. 
Investing
The 4 Basic Elements Of Stock Value
The ancient Greeks considered earth, fire, air and water the building blocks of all matter. Here are the four basic elements to break down a stock’s value. 
Investing
An Introduction To Capital Budgeting
We look at three widely used valuation methods and figure out how companies justify spending.

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