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What is the PEG ratio? How is the PEG ratio calculated? How is the PEG ratio useful for stock investing?
PEG is Price/Earnings to Growth.  It is calculated as Price/Earnings/Annual EPS Growth.  It represents how good a stock is to buy, factoring in growth of earnings, which P/E does not.  Obviously when PEG is lower, a stock is more undervalued, which means that it is a better buy, and more likely to go up. Additional References: