The ratio of measurement which determines how well a stock is performing on the trading market. The formula is to take the total earnings per every share and the ndividing it by the calculated annual rate of return. The stock will have a higher rating if the PEG ratio is higher.

More On This Topic

Link to This Definition
Did you find this definition of PEGY RATIO (PEG) helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary