PEG

PEG stands for Price/Earnings to Growth ratio, a financial metric used to evaluate a company's stock valuation. It compares the price-to-earnings (P/E) ratio to the company's growth rate in earnings. A lower PEG indicates that a stock may be undervalued relative to its growth potential, while a higher PEG suggests it may be overvalued. Investors use the PEG ratio to assess if a stock is a good investment, considering both its current earnings and future growth prospects. It provides a more nuanced view than the P/E ratio alone, helping to inform investment decisions.