PEG Ratio (Most Accurate)

Price Earnings To Growth (PEG) Ratio
PEG ratio is a stock's PE ratio divided by the growth rate of its earnings for a specified time period.
The PEG ratio is used to determine a stock's value while also factoring in the company's expected earnings growth, and it is thought to provide a more complete picture than the more standard P/E ratio.

PEG ratio 1 is fair value.
PEG ratio above > 2 is are generally considered overvalued.
PEG ratio below < 1 is Undervalued.
Negative PEG ratio indicate the company no growing in specified time period.

Example of How to Use the PEG Ratio
The PEG ratio provides useful information to compare competitive companies and see which stock might be the better choice for an investor's needs, as follows.

Google (13-Sep-2022) 👍
PEG ratio = 0.38%
P/E ratio = 19.17%

Meta (13-Sep-2022) 👎
PEG ratio = 0.63%
P/E ratio = 12.55%

Many investors may look at Meta and find it more attractive since it has a lower P/E ratio. But compared to Google, it doesn't have a high enough growth rate to justify its current P/E.
Google is trading at a discount to its growth rate and investors purchasing it are paying less per unit of earnings growth. Based on its lower PEG, Google may be relatively the better buy.