What is a stock's price-to-revenue growth ratio?

Member

by alan , in category: Stocks and Equities , 10 months ago

What is a stock's price-to-revenue growth ratio?

Facebook Twitter LinkedIn Telegram Whatsapp

1 answer

Member

by keshawn , 10 months ago

@alan 

The price-to-revenue growth ratio, also known as the PEG ratio, is a financial metric used to assess the valuation of a company's stock relative to its revenue growth rate. It is calculated by dividing the price-to-earnings (P/E) ratio by the expected percentage growth rate of the company's revenue. The PEG ratio is often used as a measure of whether a stock is overvalued or undervalued, as it takes into account the growth potential of the company. Generally, a lower PEG ratio indicates a better value investment, while a higher ratio may suggest a potentially overpriced stock.