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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 price-to-earnings growth ratio, or PEG ratio, can be used to identify your next stock buying opportunity. One of the basic investment ratios used for valuing a stock, reviewing the PEG ratio ...
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. Sum of perpetuities method. The PEG ratio is a special case in the ...
Going by the fundamentals of value investing, while picking undervalued stocks, investors need to focus on their earnings growth potential.
In the spirit of better investing and in celebration of the first Worldwide Invest Better Day coming up on Sept. 25, Motley Fool analysts will be answering user- and reader-submitted questions ...
Stocks-to-use ratio. The stocks-to-use ratio (S/U) is a convenient measure of supply and demand interrelationships of commodities. This ratio indicates the level of carryover stock for any given commodity as a percentage of the total use of the commodity. It is typically used for grain commodity stocks such as wheat, corn and soybeans where it ...
A lower PEG ratio, preferably less than 1, indicates both undervaluation and solid future growth potential of a stock.
Polyethylene glycol ( PEG; ⫽ ˌpɒliˈɛθəlˌiːn ˈɡlaɪˌkɒl, - ˈɛθɪl -, - ˌkɔːl ⫽) is a polyether compound derived from petroleum with many applications, from industrial manufacturing to medicine. PEG is also known as polyethylene oxide ( PEO) or polyoxyethylene ( POE ), depending on its molecular weight. The structure of PEG ...