what is the peg ratio and what does it do
- The Price/Earnings to Growth (PEG) ratio is a great tool to quickly scan for high-growth stocks at a fair price. Learn more about how it's used to invest. Advertiser Disclosure: The credit card offers that appear on this site are from credit card companies from which MoneyCrashers.com receives compensation. Beware the PEG Ratio So the PEG ratio is simply a proxy for it, and nothing more. There is also no consensus on whether to use a trailing or a forward P/E ratio and whether to use next year's expected growth rate or a longer-term expected growth rate. But this can have a major impact on the PEG ratio calculation. Beware Those 5-year Growth Rates