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Glossary

PEG Ratio

Important — standard screening

What it measures

P/E divided by earnings growth rate. Adjusts P/E for growth expectations.

Formula

P/E / Earnings Growth Rate

Benchmark

< 1 = undervalued · 1-2 = fair · > 2 = expensive

Related metrics

P/EEPS CAGR 3-YearEPS CAGR 5-Year

Source

Peter Lynch, One Up on Wall Street (1989)

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Piotroski F-Score