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.