What are the limitations of the PEG ratio?

Aug 9, 2024 ... A good PE ratio is subjective. It can vary depending on the industry, growth prospects, and financial health of the company. However, it is ... Jan 14, 2025 ... Determining what constitutes a “good” P/E ratio depends on several factors, including the industry, the company's growth prospects, and market ... Oct 22, 2024 ... Price/earnings ratio (P/E). Another common financial ratio is ... The interest coverage ratio is another good way to measure whether a ... However, the P/E ratio can be very misleading. Look, for example, at the average P/E ratio for the S&P 500 over time: PE Ratio Historical Chart. Chart Source ... Is High or Low PE Ratio Better? ... There is no hard and fast rule to determine whether a P/E ratio is “good” or “bad”. A high P/E ratio could mean that a ... Mar 29, 2025 ... All else equal, the lower the P/E ratio the better. A stock with a low P/E ratio might be a good investment because you're spending less on ... Mar 11, 2023 ... What is considered a good P/E ratio? A good P/E ratio varies depending on factors such as type of industry and sector, but generally, ratios ... Feb 26, 2024 ... There's no specific P/E ratio that indicates a share is cheap or expensive, just as there is no such thing as a good P/E ratio. However, ... Apr 10, 2025 ... A higher P/E ratio may indicate that a company could be considered a growth stock. This is a company with higher expectations of future earnings ... May 18, 2022 ... Over history, the average P/E ratio of the stock market has been around 15-17. But the average P/E of the stock market has fluctuated for many ...