P.E.G stands for price/earnings to growth in the stock market. By considering a firm’s price-to-earnings (P/E) ratio and predicted earnings growth rate, investors may determine the relative worth of the stock.
The price of a stock is divided by the earnings per share (EPS) to arrive at the P/E ratio. It shows the premium that investors are ready to pay above the company’s earnings per share. A high P/E ratio indicates that investors are prepared to pay more for the company and have high expectations for future development