Which one of the following factors is not considered calculating a firm's PEG ratio?
A) Projected growth rate of the value indicator (e.g., earnings)
B) Ratio of market price to value indicator (e.g., P/E)
C) Share exchange ratio
D) Historical growth rate of the value indicator
E) None of the above

Question

Quizplus · Accepted Answer

The share exchange ratio is not considered when calculating a firm's PEG ratio. The PEG ratio takes into account the projected growth rate of the value indicator (e.g. earnings) and the ratio of market price to value indicator (e.g. P/E), as well as the historical growth rate of the value indicator. Therefore, the correct answer is C.

Which One of the Following Factors Is Not Considered Calculating