How to make use of the peg ratio
In this post I am going to explain the steps to make use of the peg ratio for a stock.
I choose APPLE for this example
We take first the data, using only the close price (financial yahoo for example to download).
Next we go on ychart and download the peg ratio for Apple
And then we create a linear chart using them both.
Although it's not the best of the examples, we can still see that the price of stock is moving according to peg ratio. It’s a good tool to use and combine with other if you want to know exactly if it's worthy to buy a stock or not.
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