How to calculate a PEG ratio (4 Steps)
Post on: 10 Июнь, 2015 No Comment
Instructions
Before you are able to find the PEG ratio, you must first know what the price to earnings ratio, or p/e ratio of your stock is.
In order to find the PEG ratio, which is the Price to Earnings Growth ratio, we need to use the price to earnings ratio that we just found. Using the example from step 2 we start out with our p/e of 15. To find the peg ratio the p/e of 15 is then divided by the expected annual growth of the company. Let’s say that the expected growth of this company is 10% per year. We then take 15/10 to get a PEG ratio of 1.5.
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