PEG ratio=PE ratio/ Earnings growth rate 即: PEG ratio=市盈率/盈利增长率 PEG ratio的实质是将市场给与的估值倍数与公司的利润增长倍数进行对比,与市盈率类似,比率越高,则估值越高,比率越低,则表示该公司可能被低估。一般来说,若PEG ratio等于1,则认为公司的估值与价值相符(估值合理)。高于1,则可能被高估。
The PEG ratio is best suited to stocks with little or nodividend yield. That's because the PEG ratio doesn't incorporate income received by the investor. Thus, the metric may give inaccurate results for a stock that pays a high dividend. Consider the scenario of an energy utility that has...
PEG RatioThe PEG approach is a simple valuation tool, popularized by Peter Lynch and The Motley Fool among many others. Here is how Lynch puts it in One Up on Wall Street: "The p/e ratio of any company that's fairly priced will equal its growth rate." ...
How PEG ratio can help investors decide on stocksMitch Zacks
How is gear ratio calculated? The gear ratio is calculated by dividing the angular or rotational speed of the output shaft by the angular speed of the input shaft. It can also be calculated by dividing the total driving gear’s teeth by the total driven gear’s teeth. Is ...
Stand-alone, the P/E ratio is a valuation metric that measures a company's stock price compared to its earnings per share, but one of its shortcomings is it doesn't consider a company's expansion. PEG goes a step further to help estimate the future growth of a company. The PEG is co...
Once the P/E ratio is calculated, one can compare the P/E ratio of XYZ to its peers in the same industry/sector, or to the market as a whole. For example, comparing the P/E ratio of XYZ to the broader S&P 500, one can see that XYZ trades at a lower multiple than this large,...
One way to interpret this is that investors are paying $22 for each dollar of earnings Willow Company brings in. Understanding The PE Ratio Once you’ve calculated the PE ratio, there are three different ways you could interpret the number you’ve come up with. Each perspective provides you...
PEG Ratio –It is simply the P/E ratio divided by the EPS growth rate and is often in the range of 0.5x to 3.5x. The best part of this method is it considers the growth prospects of the company while capturing its growth rate. A company in the growth stage will have more value ...
Many ratios and financial metrics are used to evaluate companies, but three of the most useful are theprice-to-earnings(P/E) ratio, theprice/earnings to growth(PEGs) ratio, and the price-to-sales (P/S) ratio. These ratios are already calculated for you on websites such as Yahoo! Finan...