The price/earnings-to-growth (PEG) ratio is a valuation metric that adjusts the traditional price-to-earnings multiple by factoring in a company’s expected earnings growth. It is calculated by dividing the P/E ratio by the earnings growth rate, providing a more complete picture of value than the P/E ratio alone. A PEG ratio below 1.0 often suggests a stock may be undervalued relative to its growth, while a higher PEG can indicate overvaluation【92739446481443†L308-L337】.
