Price To Earnings To Growth

Asset symbol is not found or was delisted

We are unable to locate this entity at this time. If you believe the symbol you are trying to look up is valid, please let us know, and we will check it out. Check all delisted instruments across multiple markets.

Indicator Description

Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.

PEG Ratio

 = 

PE Ratio

EPS Growth

PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
All Equity Analysis  Details 

Price To Earnings To Growth In A Nutshell

When using the PEG ratio, you are attempting to find the value of the stock or equity. Not only that, but when using the PEG ratio, this is factoring the stocks earnings growth as well. Its close cousin, the PE ratio, is typically used to see if a stock is undervalued or overvalued. With the PEG ratio, if the number ends up being lower, this could be a sign that the company has growth issues.

The PEG ratio or price to earnings to growth ratio is used when evaluating the health and growth of a company. These ratios allow for people to compare companies on a more consistent level and bring efficiency to the process.

Closer Look at Price To Earnings To Growth

Growth issues in a company can be detrimental to your portfolio because as an investor, you want returns on your investments. With that, you have to also be careful because even though a company may not grow for some time, that does not always make it a poor investment. So when looking at a PEG ratio, a larger number can mean that the stock is overvalued or that growth is in the future. Reverse side of the coin could mean the company is undervalued or that the growth is not there. Either way, be sure to complete detailed research and figure out if this is a good fit for your portfolio.

The PEG ratio is purely fundamental and does not take into account the chart or any movements within it. Just like anything, be sure to look at as much of the story as possible because you want to get the best picture possible. Using the Internet is a great way to see how other people use the PEG ratio in their analysis, which can spark ideas in your own trading and investing. Be sure to test this out and make sure it fits with your current processes. If you get stick or find that you need ideas, reach out to an investing professional and they can help to guide you in the right direction. The PEG ratio is a great tool to learn and keep you in your arsenal of evaluation tools and is also widely used in the investing community.

Other Suggestions

ORA Ormat TechnologiesCompany
ORAZX Oppnhmr Rochester ArizonaMutual Fund
68389XBU8 ORACLE PORATIONCorporate Bond
OJUSX Orange JuiceCommodity

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
CRMSalesforce
CCitigroup
GMGeneral Motors
WDWalker Dunlop
MSFTMicrosoft

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Hedge Favorites Idea
Hedge Favorites
Invested few shares
Go
FinTech Idea
FinTech
Invested over 30 shares
Go
Momentum Idea
Momentum
Invested over 60 shares
Go
Banking Idea
Banking
Invested over 30 shares
Go
Cash Cows Idea
Cash Cows
Invested few shares
Go
Power Assets Idea
Power Assets
Invested over 300 shares
Go
Chemicals Idea
Chemicals
Invested over 30 shares
Go
Tech Growth Idea
Tech Growth
Invested over 20 shares
Go
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY