As we know already, stock traders can be of two types, short-term trader or long-term investor. If you’re more of a medium to long term investor like Warren Buffett who is not looking for short-term profit, instead want to do stock trading 여우알바 looking at the long-term benefit – then you have to look more at things like the price-to-earnings ratio. To calculate the price-to-earnings ratio or P/E ratio, you have to divide the share price (current) by the earnings-per-share. And if you take the p/e ratio divided by the earnings growth rate, for a specific period, this is known as the PEG ratio.
What is the PEG ratio?
So, PEG ratio is what tells you whether a share is overvalued or is it undervalued, or is it expensive or is it cheap. And this is only important if you are a long-term investor. If you’re a short-term trader it