Discover how the PEG payback period helps gauge investment potential by estimating the time needed to double stock investments. Learn its formula and limitations.

When using the estimated earnings growth rate to judge a stock’s value with the PEG ratio, it’s important to check the number of analysts making the estimate.

Unlike the standard P/E ratio, which simply compares price to current earnings, PEG incorporates growth projections. If a stock trades at a PEG below 1.0, it is seen as an opportunity. If it is above ...

Here’s a stock picking tool you might not have thought about. It’s called the PEG ratio. The PEG ratio is a ratio of two ratios. The numerator, or top line, is a stock’s price/earnings ratio, ...

To project P/E valuation analysis further into the future, investors use the PEG ratio. The PEG ratio divides the forward P/E ratio by the expected growth rate. Generally, a stock with a PEG ratio of ...

In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a ...