What Everybody Ought to Know About Using the PEG Ratio in Risk Management
It was 2008, and Rajesh, a young investor, was excited about the booming stock market. He bought shares in a company with a low Price-to-Earnings (P/E) ratio, believing it was undervalued. A year later, the stock collapsed because the company’s earnings growth had stalled. Rajesh had missed a crucial factor: growth. If he had used…