Skip to content

Is a lower or higher justified PEG ratio better?

July 10, 2017

The lower the PEG ratio the more then stock may be undervalued.

The higher PEG ratio stock is less able to justify its P/E ratio relative to its implied growth rate.

A broad rule of thumb is a PEG ratio less than one is desirable.

Advertisements

From → Asset Valuation

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: