PEG Ratio
What is it? An indicator of whether a stock is undervalued or overvalued. To obtain the PEG ratio, a stocks price/earnings ratio (P/E) is divided by its forecasted earnings growth rate. A fairly valued stock would have a PEG ratio of 1; its current P/E and future earnings growth rate being equal. A ratio of less than 1.0 can be an indication that the stock is undervalued, and poised to grow. The usefulness of this calculation depends on the accuracy of the stocks earnings estimates, which you can find at Quotes Plus.Added By: Jordan
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