PEG Ratio

Valuation

What is PEG Ratio?

P/E ratio divided by the expected earnings growth rate. Adjusts the P/E ratio for anticipated growth.

Why PEG Ratio matters

A PEG near 1.0 is sometimes interpreted as trading in line with its growth rate, though this varies by sector and market conditions.

Related terms in Valuation

DCF (Discounted Cash Flow)Intrinsic Value Market Capitalization P/B Ratio (Price-to-Book)P/E Ratio (Price-to-Earnings)P/S Ratio (Price-to-Sales)Residual Income Model Terminal Value

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.