Wednesday, 3 April 2013

Ranking Stocks using the PEG Ratio

PEG = PE / EPS Growth Rate

PEG Ratio Key Points
1. Less reliable for large low-growth companies.
2. Estimates can differ from future realities.
3. Compare individual PEG Ratio to industry and market averages.
4. Beware of speculative and low-dollar stocks with low PEG Ratios.

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