Equity Valuation
PEG Ratio
Definition
What is PEG Ratio?
Price-to-earnings ratio divided by an expected earnings-growth rate.
Example in practice
How This Looks in Practice
A P/E of 20 and expected growth of 20% produce a PEG ratio of one under the common convention.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.