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Stock Research PRO News
The PEG Ratio and Stock Valuation
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Added on 18:07:2009
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| | The PEG ratio (Price/Earnings to Growth ratio) is a valuation metric used to measure the trade-off between a stock�s price, its earnings per share (EPS), and the expected growth of the company. While the price/earnings (P/E) ratio is closely tracked to determine whether a stock is over or under-priced, the PEG ratio incorporates the earnings growth rate to better measure the potential value of a stock.
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