Equity ResearchHard

What is the PEG ratio, and what is wrong with it?

Model answer

PEG is the P/E ratio divided by the expected earnings growth rate (as a whole number): a stock at 20x growing EPS 20% has a PEG of 1.0, and the folk heuristic treats below 1.0 as cheap, above as…

The full, human-reviewed answer is in the bank.

Sign up free and Daily 10 serves you 10 questions a day from all 2,300+ — or go Pro for unlimited reps.

Pro unlocks every model answer — $19.99/mo.

Also want The 5-Day Rep Program? One short email a day for five days — the out-loud method, start to first offer-ready rep. Free.

Double opt-in: we email you a confirm link first — no confirmation, no emails. Unsubscribe anytime with one click.

More from Equity Research

Try the real thing

1 / 3
M&A & Merger ModelsMedium

What makes an acquisition accretive or dilutive to EPS?

Superday coming up? Take the cheat sheet.

The technicals and stories to have cold before you walk in — free, one email, no mailing list.

Free tier: 20 cards + 10 daily reps + ALL drills — no credit card required.