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Home » Frequently Asked Questions » What does a PEG ratio of 1, less than 1, or more than 1 indicate?

What does a PEG ratio of 1, less than 1, or more than 1 indicate?

A PEG ratio of 1 indicates the company is fairly valued, less than 1 suggests it is undervalued, and more than 1 suggests it is overvalued.

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