n NISM Certifications
NSM General NISM
Medium

Which of the following is the correct formula for calculating the PEG ratio?

Practice question from A-CWM B1 S4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    PE Ratio × Earnings Growth Rate (%)

  2. PE Ratio ÷ Earnings Growth Rate (%)

    Correct answer

  3. C

    Market Price ÷ Earnings Growth Rate (%)

  4. D

    Earnings Growth Rate (%) ÷ PE Ratio

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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