PEG Ratio : Unleashing the Potential of Long-Term Investing
- Investors commonly use the price-to-earnings (P/E) ratio and the price-to-earnings growth (PEG) ratio to evaluate stocks.
- While the P/E ratio is widely used, it can be overused and misused, and it does not consider a company's growth prospects.
- In contrast, the PEG ratio takes into account a company's earnings growth rate, making it a more valuable tool for long-term investors.
- During current market conditions, low P/E ratios do not automatically make stocks worthwhile investments, so it's essential to evaluate all factors carefully.
Learn how to use PEG Ratio in investment decision.
*Read the full article : https://aceink.com/the-edge-of-peg-ratio-over-pe-ratio-a-smart-choice-for-long-term-investors/
