Which of the following would increase a firm's PEG ratio?
A) An increase in the firm's P/E
B) A decrease in the firm's net profit margin
C) An increase in the firm's growth
D) A decrease in the firm's fixed capital investment

Question

Quizplus · Accepted Answer

The PEG ratio is calculated as the P/E ratio divided by the growth rate of earnings. An increase in the P/E ratio would increase the PEG ratio, assuming the growth rate remains constant.

Which of the Following Would Increase a Firm's PEG Ratio