Price to Earnings Growth Ratio

The Price to Earnings Growth (PEG) Ratio is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio provides a more complete picture of whether a stock's price is overvalued or undervalued by taking into account the expected earnings growth. It is particularly helpful for investors who are considering the growth potential of a stock in addition to its earnings.