| Price/Earnings to Growth - PEG Ratio | |
 A ratio used to determine a stock's value while taking into account earnings growth. The calculation is as follows:  |
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 PEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth. Keep in mind that the numbers used are projected and, therefore, can be less accurate. Also, there are many variations using earnings from different time periods (i.e. 1 year vs 5 year). Be sure to know the exact definition your source is using. |
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 Move Over P/E, Make Way For The PEG - Has the P/E ratio lost its luster? The PEG ratio has many advantages over its well-known counterpart. How The PEG Ratio Can Help Investors - Learn how this little gem in the investment world can help you be a better investor. Understanding the P/E Ratio - Learn what the price/earnings ratio really means and how you should use it to value companies. |
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