PEG (Projected EPS Growth)

Projected EPS growth is the mean estimate of long-term EPS growth , derived from all polled analysts' estimates.

Origin

This information is provided by Multex.

Benefit

PEG gives an indication of how cheap or expensive a stock is compared with its forecasted growth rate. Because it is ratio of P/E to earnings growth, PEG allows investors to compare companies with different growth rates.

For the Pros

Many growth-oriented investors like to use PEG to impose some discipline on how much they are willing to pay for growth. As a general rule of thumb, stocks with PEGs of less than 1.0 are considered possible values.