Price/Earnings To Growth And Dividend Yield - PEGY Ratio

Posted in Finance, Accounting and Economics Terms, Total Reads: 1012
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Definition: Price/Earnings To Growth And Dividend Yield - PEGY Ratio

It is a variation of the P/E ratio. In this the stock is further evaluated to understand the performance of stock in question is by seeing the ratio of its price to its earnings and the expected earnings growth and the dividend yield.


It is calculated as:

PEGY = (Price/Earnings) / (Earnings Growth per Share + Dividend Yield)


PEGY tells us that even if a share may be cheap today but it may have high potential in future. 




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