Source: wikibot/peg-ratio
= PEG ratio
{wiki=PEG_ratio}
The PEG ratio, or Price/Earnings to Growth ratio, is a financial metric used to evaluate a stock's valuation relative to its earnings growth rate. It is calculated by taking the Price-to-Earnings (P/E) ratio and dividing it by the expected growth rate of the company’s earnings (typically over the next 5 years).