The PEG Ratio (Price-to-Earnings-to-Growth Ratio) Definition |Your Online Finance Dictionary

The Price-to-Earnings-to-Growth ratio, also called the PEG ratio, measures a company’s current P/E ratio against its estimated growth potential to more accurately determine if a stock is under or overvalued.
The PEG ratio uses trailing P/E ratio and divides it by a company’s earnings growth over a specified period of time.
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0:00 PEG Ratio Definition
0:31 PEG Ratio Example
0:49 Trailing vs Forward P/E Ratio
1:00 PEG Ratio Question
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