PEG (growth-adjusted P/E)
PEG divides a company's P/E by its expected earnings growth rate. It comes from a reasonable intuition: a high P/E is justified if earnings are growing fast, and a low one can be a trap if the business is shrinking. Its weakness is that the denominator is an estimate, so PEG inherits whatever optimism or error sits in the growth forecast.
Formula
PEG = PER ÷ crecimiento esperado del BPA (%) See it on real data
Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.
Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.