PEG ratio



PEG – Price/Earnings Growth ratio.

The PEG ratio is a simple tool for search undervalued stocks.

Stocks with PEG less than one is undervalued, and stock with PEG greater than 1 would be overvalued.

Formula:

PEG = (A) Price per earnings / (B) Annual EPS growth

Price per earnings (A):
Annual EPS growth (B):

Annual EPS growth (B) must be diferent from 0 !
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