The Truth Behind PEG by Douglas Lyon, PhD
The computation of the PEG ratio is so seemingly simple and yet is often reported in different ways, sometimes unbeknownst to the user. Let’s look at how PEG should be calculated and why.
To a pure technical analyst, the PEG ratio—P/E ratio over growth—may not come into play often. But for those who throw in some fun-damentals to their analysis, especially when screening stocks to trade, it may come as a surprise that the PEG is often misrepresented ...