Some analysts believe that the P/E ratio of a company that is fairly valued will equal its expected growth rate.

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This is known as the "PEG ratio" which stands for price-to-earnings-to-growth ratio. It is a valuation metric used to determine a company's value based on its earnings growth rate. A PEG ratio of 1 indicates that the company is fairly valued, while a PEG ratio greater than 1 suggests that the company is overvalued and a PEG ratio less than 1 suggests that the company is undervalued.

Some Analysts Believe That the P/E Ratio of a Company