What is the 'Price/Earnings To Growth  PEG Ratio'
The price/earnings to growth ratio (PEG ratio) is a stock's pricetoearnings ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while taking the company's earnings growth into account, and is considered to provide a more complete picture than the P/E ratio. While a low P/E ratio may make a stock look like a good buy, factoring in the company's growth rate to get the stock's PEG ratio can tell a different story. The lower the PEG ratio, the more the stock may be undervalued given its earnings performance. The calculation is as follows:
P/E ratio ÷ Annual EPS Growth
BREAKING DOWN 'Price/Earnings To Growth  PEG Ratio'
The PEG ratio that indicates an over or underpriced stock varies by industry and by company type, though a broad rule of thumb is that a PEG ratio below one is desirable. Also, the accuracy of the PEG ratio depends on the inputs used. Using historical growth rates, for example, may provide an inaccurate PEG ratio if future growth rates are expected to deviate from historical growth rates. To distinguish between calculation methods using future growth and historical growth, the terms "forward PEG" and "trailing PEG" are sometimes used.
Get more acquainted with the PEG ratio by reading PEG Ratio Nails Down Value Stocks and How To Find P/E And PEG Ratios.

Currency Peg
A country or government's exchangerate policy of pegging the ... 
PriceEarnings Ratio  P/E Ratio
The PricetoEarnings Ratio or P/E ratio is a ratio for valuing ... 
Adjustable Peg
An exchange rate policy adopted by some countries wherein the ... 
Ratio Analysis
A ratio analysis is a quantitative analysis of information contained ... 
Current Ratio
The current ratio is a liquidity ratio measuring a company's ... 
P/E 30 Ratio
The pricetoearnings (P/E) ratio is the valuation ratio of a ...

Investing
PEG Ratio Nails Down Value Stocks
Learn how this simple calculation can help you determine a stock's earnings potential. 
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
The 4 Basic Elements Of Stock Value
Investors use these four measures to determine a stock's worth. Find out how to use them. 
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. 
Investing
PEG Ratio
Learn more about how this ratio is used to determine a stock's value based on its earnings growth. 
Investing
Comparing the P/E, EPS And Earnings Yield
Here are three ratios that help investors value stock returns. 
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
Beware False Signals From The P/E Ratio
The P/E ratio is a simple tool for evaluating a company, but no one ratio can tell the whole story. 
Markets
How Does a Currency Peg Work?
When a government initiates a currency peg, it pegs its currency’s value to that of another country. 
Investing
5 MustHave Metrics For Value Investors
These quickanddirty ratios will help you find the most undervalued stocks on the market.

When computing the PEG ratio for a stock, how is a company's earnings growth rate ...
Remember that the price/earnings to growth ratio (PEG ratio) is simply a given stock's price/earnings ratio (P/E ratio) divided ... Read Answer >> 
Why is the PEG (price to earnings growth) ratio something I should be looking at ...
Understand the price/earnings to growth ratio and why it may be a better stock valuation tool than the more widely used priceearnings ... Read Answer >> 
What is considered a good PEG (price to earnings growth) ratio?
Learn about the price/earnings to growth (PEG) ratio and understand what investors and market analysts consider a good ratio ... Read Answer >> 
What metrics are commonly used to evaluate companies in the retail sector?
Discover three of the most common metrics used to evaluate companies in the retail sector, and find out how each plays an ... Read Answer >> 
Over what duration should I be examining a given stock's PEG (price to earnings growth) ...
Learn how the PEG ratio provides an assessment of a stock's current price based on its trailing or projected earnings growth ... Read Answer >> 
How do I use the PEG (price to earnings growth) ratio to determine whether a stock ...
Using the PEG, or price/earnings to growth, ratio provides a better picture of a stock's valuation versus simply relying ... Read Answer >>