PEG Ratio
Definition
Price/earnings-to-growth ratio that adjusts the P/E ratio for expected earnings growth. A PEG near 1.0 is often considered fair value.
Formula / Rules
$ \text{PEG} = \frac{\text{P/E Ratio}}{\text{Annual EPS Growth Rate (\%)}} $
Example
P/E of with 25% expected growth = PEG of 0.8 (potentially undervalued). Moving Average (SMA / EMA) Category: Technical Analysis Definition: A trend-following indicator that smooths price data by creating an average price over a specific period. Simp
Frequently Asked Question
What is PEG Ratio in trading?
Price/earnings-to-growth ratio that adjusts the P/E ratio for expected earnings growth. A PEG near 1.0 is often considered fair value.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.