Fundamentals
PEG Ratio
The PEG (Price/Earnings to Growth) ratio adjusts the P/E ratio for a company's expected earnings growth rate. A PEG of 1.0 is often considered fair value; below 1.0 may indicate undervaluation relative to growth, while above 2.0 suggests expensive pricing.
Formula
PEG = P/E Ratio / EPS Growth Rate (%)