What is PRICE TO EARNINGS GROWTH (PEG) RATIO?

The prediction by security analysts and investors on the company's earning expectations, that is determined based on an analysis of past growth. Stocks with a high potential for growth that are trading at low PE multiples are discovered by comparing this ratio. A sign for great value is the PEG ratio of 1. It is the product of the future EPS growth rate and the projected PE ratio.

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