Using the PEG Ratio to Find Hidden Stock Gems
February 15th, 2010
The price-to-earnings ratio (or p/e ratio for short) is the most popular way to measure the relative valuation of two stocks. It tells the investor how much Wall Street is willing to pay for $1 of earnings. A $10 stock with $1 EPS (earnings per share) is going to have a P/E of 10 ($10 [...]