PEG Ratio!!!

I'm this excited about PEG ratios!!!!

The Price to Earnings Growth ratio is a very widely used stock ratio.  PEG ratio is used by investors to determine a stock's value while taking into account earnings growth. Many people have the opinion that because PEG takes growth into account it is superior to the P/E ratio.  The calculation for PEG is as follows:  P/E ratio divided by Annual EPS Growth.  OH THAT'S CONFUSING CHRIS!!!!!!  I know that one is a bit confusing.  So I will give an example.  Lets take Apple.  Apple has a P/E ratio or 'Multiple' of, 14.3 and an annual EPS Growth of, 85%.  Therefore the PEG for Apple is a ridiculously low .16!   (If you don't remember what the P/E ratio or Multiple is you can look up the post I wrote about it a few weeks ago.) 

Stocks with PEG ratios of 2 or less are considered cheap.  Lower PEG ratios mean that the stock in undervalued.  Keep in mind that 5 year projected PEG ratios are using estimates instead of real numbers when you look them up.

When I looked for PEG ratio's on the internet I was only able to find the 5 year projected PEG for stocks.  Yahoo.com finance and thestreet.com where the only financial sites that I could find them on.  Although it takes a bit of work to find them, PEG ratios are a valuable tool when it comes to evaluationing stocks.