What does PEG mean in UNCLASSIFIED
Price earnings to growth (PEG) is a ratio that investors use to understand if a stock is over or under valued. The PEG ratio compares the price-to-earnings (P/E) ratio to the expected earnings growth of a company's stock. PEG can help investors decide whether the price of a given stock is justified by its past and future potential earnings growth.
PEG meaning in Unclassified in Miscellaneous
PEG mostly used in an acronym Unclassified in Category Miscellaneous that means price earnings to growth
Shorthand: PEG,
Full Form: price earnings to growth
For more information of "price earnings to growth", see the section below.
Essential Questions and Answers on price earnings to growth in "MISCELLANEOUS»UNFILED"
What is the PEG Ratio?
The PEG Ratio is calculated by dividing the current market price per share by the forecasted earnings per share for next year, divided by the expected rate of annual earnings growth.
How does PEG help with investing decisions?
By comparing the price-to-earnings ratio with expected future earnings growth, investors can determine if a stock is overvalued or undervalued based on its fundamentals and make conscious investing decisions based on quantitative analysis.
What should an ideal PEG be for stocks?
Ideally, investors are seeking stocks where the current market price is lower than expected future earnings growth, so an ideal PEG would be less than 1.0.
Are there other factors to consider when evaluating stocks?
In addition to looking at a company's financials and valuations such as the P/E and PEG ratios, it's important to look at qualitative factors like corporate governance, management team strength, competitive advantage and valuation multiples when considering buying or selling stocks.
Is higher or lower better for a company's PEG?
Lower values indicate that either lower risk or higher reward could be realized for an investment in that particular stock because it has above average expected value relative to its price. Higher values indicate that either greater risk or less reward could be realized from investing in that particular stock because it has below average expected value relative to its price.
PEG also stands for: |
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| All stands for PEG |