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PEG Ratio - Price/Earnings to Growth

What does PEG mean? A PEG ratio is used to determine a stock's value while taking into account earnings growth. The calculation is as follows:

PEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth. Similar to the P/E ratio, a lower PEG means that the stock is more undervalued.

Keep in mind that the numbers used are projected numbers and, therefore, less accurate. Also, there are many variations using earnings from different time periods (i.e. one year vs five year). Be sure to know the exact definition your source is using.

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Jim Cramer's Mad Money - Stock Worksheet

Jim Cramer's Mad Money
Watch TV, Get Rich

Jim Cramer Mad Money Stock Worksheet - It's embarrassing to admit, but I really get a kick out of Jim Cramer. While he's totally nuts on his CNBC TV show, Mad Money, he was much saner on his Real Money radio program. Unfortunately, the radio program is no longer on the air, though archives exist. In its place is a very good video on demand program where Cramer is interviewed by a columnist from his own TheStreet.com. Very insightful stuff with a reasonable delivery.

But about Cramer's Stock Worksheet in Jim Cramer's Mad Money: Watch TV, Get Rich. The book is short (less than 230 pages) and perhaps the best part is the Stock Worksheet, which outlines his approach to researching stocks -- or as he likes to refer to it, The Homework.

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