Price/Earnings-to-Growth (PEG) Ratio

The PEG ratio is a stock's price-to-earnings ratio divided by its earnings growth rate over a certain period. It is used to judge a stock's value while taking expected earnings growth into account and is often seen as giving a fuller picture than the ordinary P/E ratio.

The PEG ratio compares a stock's price to both its earnings and how fast those earnings are expected to grow.