The characteristic number Price Earning ton Growth reason (PEG) is calculated for the evaluation of enterprises. It is used mainly during the evaluation of enterprises with strong growth, in particular with young technology enterprises. It designates the relationship profit on exchange relationship (KGV) to the long-term profit growth (in per cent), which becomes estimated from analysts for three to five years.

PEG = KGV: (expected) profit growth

If the PEG is smaller 1, the share is underestimated, at a value more largely 1 is it overestimated.

Articles in category "Price Earning ton Growth reason"

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