What does a PEG ratio tell you?

Tim Bennett looks at an improvement on the standard price/earnings ratio - the PEG ratio - and explains what it is and how you calculate it.

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Tim Bennett looks at an improvement on the standard price/earnings ratio - the PEG ratio - and explains what it is and how you calculate it. See also: Guide to price/earnings ratios and What is a dividend yield?

PEG ratio

Entry from MoneyWeek's Financial glossary.

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Tim Bennett

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.

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