Abstract
PEG is a newer investment ratio measure of a security’s PE ratio divided by the firm’s growth rate as a percentage. It is examined and contrasted with other investment valuation measures. PEG is shown to be problematic in terms of its units of measure, in what it purports to appropriately determine, and it is non monotonic for relatively profitable firms and is only slightly indicative of correct security selection for relatively unprofitable firms.
| Original language | Undefined/Unknown |
|---|---|
| Pages (from-to) | 1-6 |
| Journal | Journal of Finance and Bank Management |
| Volume | 3 |
| Issue number | 2 |
| State | Published - Dec 2015 |