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DEFINITION of 'Price/Earnings to Growth and Dividend Yield - PEGY Ratio'

A variation of the price-to-earnings ratio where a stock's value is further evaluated by its projected earnings growth rate and dividend yield.

Calculated as:

Price/Earnings to Growth and Dividend Yield (PEGY Ratio)



BREAKING DOWN 'Price/Earnings to Growth and Dividend Yield - PEGY Ratio'

For stocks that pay a substantial dividend, the PEGY may be an even better measure than PEG. As with the PEG, keep in mind the numbers are based on future projections and, therefore, aren't guaranteed to be accurate.

PEGY is pronounced the same way as "peggy."

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RELATED FAQS
  1. 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 >>
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    Understand the price/earnings to growth ratio and why it may be a better stock valuation tool than the more widely used price-earnings ... Read Answer >>
  3. 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 >>
  4. What is the difference between the dividend yield and the dividend payout ratio?

    Learn the differences between a stock's dividend yield and its dividend payout ratio, and learn why the latter might be a ... Read Answer >>
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