What is Price/Earning-to-Growth ratio and the formula to calculate PEG ratio. Know how it helps investors to compare the stocks and decide to invest at Angel One. The PEG ratio (price/earnings to growth ratio) is a valuation tool used to assess the trade-off between a stock's price, its earnings per share (EPS), and its anticipated growth. Typically, companies with higher growth rates have higher P/E ratios. What is the Price/Earnings-to-Growth ( PEG ) Ratio? The Price/Earnings-to-Growth ( PEG ) Ratio is a financial metric that refines the price-to-earnings (P/E) ratio by incorporating a company’s earnings growth rate over a specific time frame. By ... PEG meaning in finance is when investors utilize the Price/Earnings to Growth ( PEG ) ratio, a financial metric, to evaluate a stock's worth by comparing its price-to-earnings (P/E) Ratio to its earnings growth rate. PEG ratio is a stock valuation metric that compares the P/E ratio with the earnings growth rate. Learn how to calculate, interpret, and use the PEG ratio to assess a stock's value and growth potential.
