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Price Earning Growth (PEG) Ratio is the ratio of a company's P/E having its growth rate. Navigating To link use with has uncountable disturbing aids for where to engage in this enterprise. PEG ratio is way too simple to single-handedly assign a good price for a typical stock. It's only wrong and misleading to make use of PEG percentage for the fair value calculation. Wise practice dictates that a investment with higher growth rate should really be valued at a higher P/E ratio. There is nothing wrong with that. But as a reasonable value of a typical stock using a simple PEG ratio of 1 is merely wrong. I actually do not need an exact method to determine this but an evaluation could be read on other articles named Calculating Fair Value with Growth and Fair Value with Negative Growth.

The Folly of PEG Ratio

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