Growth & Momentum
PEG
Shows how much a concrete financial line item in the app rises or falls between comparable periods. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can exaggerate
PEG
priceToEarningsGrowthRatio · Growth & Momentum
- Definition
- Shows how much a concrete financial line item in the app rises or falls between comparable periods. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can exaggerate the signal.
- Calculation
- P/E / expected earnings growth rate.
- Uses
- Useful for detecting acceleration, deterioration and persistence. It works best in businesses with recurring or secular demand; it is weaker in cyclicals, commodities, banks, insurers and turnarounds. Cross-check with margins, ROIC, FCF per share, debt and dilution.
