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PEG ratio. The ' PEG ratio' ( price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share ( EPS ), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus, using just the P/E ratio would ...
The stock's price/earnings-to-growth ratio (PEG), which takes into account its potential earnings growth, stands at 0.55, as we can see in the chart below. TTD PEG Ratio (Forward 1y) Chart TTD PEG ...
ELF PEG Ratio (Forward) data by YCharts Trading at a price/earnings-to-growth ratio (PEG ratio) of under 0.7, this growth stock is very attractively priced after its recent sell-off. A PEG under 1 ...
A stock with a PEG ratio of less than 1 means that it is undervalued. As the following chart shows, Palantir's PEG ratio is well below 1. PLTR PEG Ratio (Forward) Chart.
Stock B is trading at a forward P/E of 30 and expected to grow at 25%. The PEG ratio for Stock A is 75% (15/20) and for Stock B is 120% (30/25). According to the PEG ratio, Stock A is a better purchase because it has a lower PEG ratio, or in other words, its future earnings growth can be purchased for a lower relative price than that of Stock B.
Valuation using multiples. In economics, valuation using multiples, or "relative valuation", is a process that consists of: identifying comparable assets (the peer group) and obtaining market values for these assets. converting these market values into standardized values relative to a key statistic, since the absolute prices cannot be compared.
Generally, I like to pay a PEG ratio of 1.5 or less for a stock, maybe a ratio of 2 for an exceptional company. But Palantir's current PEG ratio of 3.5 is well beyond that. But Palantir's current ...
NVDA PEG Ratio (Forward) Chart. Data by YCharts. Of this trio, Nvidia is the only stock with a PEG ratio below 1, meaning its current valuation is much more reasonable than P/E alone would show ...