PEG Ratio (Price/Earnings Growth)
PEG Ratio (Price/Earnings Growth) is a valuation metric that compares a company's price-to-earnings ratio to its expected earnings growth rate. It is used to evaluate whether growth prospects are reflected in the price.
Example: If a stock has a forward P/E of 20 and an expected EPS growth of 10%, its PEG would be 2.
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