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Options
-
[Current Price of Stock / EPS] ÷ Growth Rate
Correct answer
- B
[Current Price of Stock / EPS] × Growth Rate
- C
[Current Price of Stock / EPS] + Growth Rate
- D
[Current Price of Stock × EPS] ÷ Growth Rate
Why this is the answer
PEG Ratio = P/E ÷ Earnings Growth Rate. It adjusts valuation for growth, providing a more complete picture than the P/E ratio alone. Lower PEG indicates better growth-adjusted value.
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