price to earnings growth (PEG) ratio
Definition
Indicates the value stockmarket analysts and investors put on a firm's earning expectations compared to what it had earned in the past, and is used to discover stocks that have high growth potential but are trading at a discount. A PEG ratio of 1 is considered a sign of good value. Formula: Stock's projected PE ratio ÷ Stock's projected EPS growth rate.
price to earnings growth (PEG) ratio is in the Accounting & Auditing, Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.
price to earnings growth (PEG) ratio appears in the definition of the following term: price/earnings growth ratio
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