PEG Ratio
InvestingThe P/E ratio divided by the expected earnings growth rate, adjusting valuation for growth potential.
Example
Example: Consider an investor building a $100,000 portfolio. PEG Ratio — the p/e ratio divided by the expected earnings growth rate, adjusting valuation for — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.