PEG ratio
The P/E ratio divided by the expected earnings growth rate.
Formula
PEG = P/E ÷ Expected EPS growth (%)
How to read it
Around 1 is conventionally fair; well below suggests growth is cheap, if the estimate is right.
How to use it
Puts growth into valuation: a high P/E can be cheap if growth is high.
Limitations
A ratio of two vendor estimates, so it inherits both their errors.
In Kereon
Kereon shows this figure as its data vendor publishes it and does not recompute it, so the vendor's exact inputs — which period's earnings, which balance sheet, which adjustments — are not visible here. The calculation above is the standard definition.
Also called: peg, peg ratio.