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The 'PEG ratio' (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share , and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus, using just the P/E ratio would make high-growth ...
The looming growth in generative AI is a game changer. ... That's a price/earnings-to-growth (PEG) ratio of just 1.3, meaning the growth justifies the valuation. The stock might be volatile along ...
PVGO = share price − earnings per share ÷ cost of capital. This formula arises by thinking of the value of a company as inhering two components: (i) the present value of existing earnings, i.e. the company continuing as if under a "no-growth policy"; and (ii) the present value of the company's growth opportunities.
The company's PEG ratio is low. A Price/Earnings/Growth rate below 1 means the PE ratio is less than the growth rate. An excellent stock at a fair price is more likely to be undervalued than is a poor stock at a low price, according to Charles Munger, the Harvard-educated partner of Buffett. An excellent stock continues to rise in value over ...
The resulting price/earnings-to-growth (PEG) ratio is under 1.5, which makes it an easy buy at these prices. I'd happily buy a dominant tech and AI stock like Alphabet at a PEG ratio of 2.0 to 2.5 ...
While searching for a suitable value investment option, investors are unlikely to consider PEG ratio among a number of other popular value metrics. 5 Top PEG-Driven Value Stocks Amid Coronavirus ...
While P/E alone gives an idea of stocks that are trading at a discount, PEG helps to identify stocks with solid potential. The stocks that qualify the screening include SC, PTR, AN, ASO, DVA, WLK ...
The justified P/S ratio is calculated as the price-to-sales ratio based on the Gordon Growth Model. Thus, it is the price-to-sales ratio based on the company's fundamentals rather than . Here, g is the sustainable growth rate as defined below and r is the required rate of return. [1]