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PEG Ratio = (P/E Ratio) / Projected Annual Growth in Earnings per ShareMeaning
The PEG ratio uses the basic format of the P/E ratio for a numerator and then divides by the potential growth for EPS, which you'll have to estimate. The two ratios may seem to be very similar but the PEG ratio is able to take into account future earnings growth. A very generally rule of thumb is that any PEG ratio below 1.0 is considered to be a good value
Sialkot - Pakistan
Lahore City, Pakistan