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PEG Ratio

(P/E) / EPS Growth Rate

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Fundamental

PEG Ratio

(P/E) / EPS Growth Rate

Definition

PEG ratio adjusts P/E for growth expectations. Formula: (Price/Earnings) / Expected EPS Growth Rate. Ratios below 1 may indicate undervaluation relative to growth prospects. Useful for growth stock evaluation.

Related Topics

#valuation #growth adjustment #p/e ratio #growth stocks

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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