The price/earnings-to-growth ratio (PEG ratio) is a metric used to value a stock by considering the company's market price, its earnings and its projected growth.

Example PEG Ratio Calculations As an example, let’s look at the PEG ratio for Apple, Inc (AAPL). Based on recent analysis, Zacks reported Apple’s PEG ratio at 3.68.

A low PEG ratio is always better for value investors. While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.

PEG Ratio vs. P/E Ratio The price-to-earnings (P/E) ratio gives analysts a good fundamental indication of what investors are currently paying for a stock in relation to the company's earnings ...

A low PEG ratio is always better for value investors. While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.

A price-to-earnings (P/E) ratio helps investors find the market value of a stock compared with the company’s earnings. Learn how the P/E and PEG ratios assess a stock’s future growth.