While the PE ratio only considers a company’s earnings in relation to its share price, the PEG ratio also factors in the company’s anticipated earnings growth rate. A PEG ratio under 2 often points to an undervalued company.
Home » Frequently Asked Questions » How does the Price/Earnings to Growth (PEG) Ratio differ from the PE ratio?
While the PE ratio only considers a company’s earnings in relation to its share price, the PEG ratio also factors in the company’s anticipated earnings growth rate. A PEG ratio under 2 often points to an undervalued company.
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Whale app is a Finitiative Consultancy OÜ service.