Compute the PEG ratio from the P/E ratio and earnings growth rate.
输入市盈率 PE 与盈利增长率 g(百分比),求 PEG。
| Item | Formula / Rule | Source / Standard |
|---|---|---|
| PEG definition | PEG = P/E / earnings growth rate, putting valuation and growth in a single ratio | Lynch 1989, One Up on Wall Street |
| Rule of thumb | A PEG below 1 often reads as cheap and above 2 as rich, subject to growth sustainability | Lynch 1989, One Up on Wall Street |
| Caveats | Expected growth inputs are subjective and PEG ignores risk and cash flow quality | Easton 2004, Review of Accounting Studies 9(1) |