PEG ratio isn’t the mysterious focal point of the 70s American rock band Steely Dan (“Peg,” the 1977 hit from Steely Dan), but what it is, how it works and when you use it is a mystery to some ...
— -- Q: What is a PEG ratio and what does it tell investors about stocks? A: When stocks start rising, and valuations increase, investors start looking for ways to justify the higher price tags.
Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. The price/earnings-to-growth ratio, or ...
GARP combines growth and value investing, focusing on stocks with high earnings growth and fair valuations. PEG ratio under 1 is vital for GARP; it equals a stock’s P/E ratio divided by expected ...
Recently, I have been engaged in rather intense discussions regarding the validity of P/E ratios versus PEG ratios as proper or appropriate valuation metrics. I generally find these types of debates ...
PEG ratios help investors compare stocks on an apples-to-apples basis. PEG ratios vary by company, sector, and industry. Alphabet's PEG ratio says that the stock is undervalued relative to its ...