The price/earnings to growth ratio (PEG ratio) is a stock'sprice-to-earnings(P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while also factoring in the company's expected earnings growth, and it i...
PEG = 26.1/ 71.0 PEG = 0.37 Is this a good PEG ratio for Apple? Realistically, the huge growth rate in EPS from 2020 to 2021 should not be expected to be the norm for a company over the long term. Better yet would be to make an adjustment to find a more reasonable growth rate. ...
The PEG ratio is used to determine a stock's value while also factoring in the company's expected earnings growth, and it is thought to provide a more complete picture than the more standard P/E ratio. Key Takeaways The PEG ratio enhances the P/E ratio by adding expected earnings growth...
In fact, the PEG ratio is not a constant that can be used to decide whether a stock is cheap or not. Rather, a plot of the relationship of the justifiable PEG to the growth rate is u-shaped for a wide range of para...
What Are the Four Factors of Production? Know why the PEG ratio is important for your investment analysis. Paulina LikosDec. 15, 2020 How to Use the PEG Ratio for Stock Picks The dividend rate and dividend yield can both be used to evaluate a dividend investment. Coryanne HicksNov. 16,...
One variation of the P/E ratio is the price-to-earnings to growth ratio, also known as the PEG ratio. The PEG ratio is calculated as the trailing P/E ratio divided by the future expected growth rate. The PEG ratio takes into account the current earnings and the expected growth. ...
What is the Price-to-Earnings (P/E) Ratio? How to calculate P/E ratio What does the P/E ratio tell us? What is considered a “good” P/E ratio? P/E ratio vs earnings yield: what are the differences? P/E ratio vs PEG ratio: what are the differences? FAQWhat...
Investors use a lot of variations on the idea of the P/E ratio, such as the price-to-earnings-growth (PEG) ratio and price-to-book-value. Each shows a different flavor of the same idea — how much is the company worth to others right now, and is the price fair? MarketRiders, Inc...
Investors should also note that LULU has a PEG ratio of 1.61 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.6...
When its dividend yield of 2.1% is accounted for, it has a PEGY of 1.78. This demonstrates that ABC's stock is cheaper than its PEG ratio shows, because the ratio accounts for the money an investor gets back in the form of a dividend. A PEGY ratio of less than 1 indicates a stock...