What value does the PEG ratio provide to financial analysts

What value does the PEG ratio provide to financial analysts? TTT Arial

Solution

PEG refers to the price earning to the growth ratio. It is the stock\'s price-earning ratio divided by the growth rate of such stock\'s earning for a particular period. It is used for valuation of a stock by considering its earnings and the growth also, it gives better view of P/E ratio. It is a more comprehensive method used by a financial analyst.