| Price/Earnings
to Growth - PEG Ratio |
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A stock's P/E ratio divided by its projected earnings growth rate.
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PEG is a widely used indicator of a stock's potential value.
By many it is favored over the price/earnings ratio because it also accounts for growth.
Keep in mind numbers used are projected and so can be less accurate. Also, there are many variations using earnings from different time periods (ie. 1 year vs 5 year). Be sure to know the exact
definition your source is using.
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