In my view PEG, which is the ratio of P/E Ratio and CAGR(Compunded Annual Growth Rate) is a better indicator for stock valuation. Any stock having PEG between 0 and 1 is considered a better bargain than a stock having PEG more than 1. Along with PEG one should consider stocks having PE ratio below 15 and CAGR above 30.
PE Ratio between 9 to 17 is considered ideal for investment by many experts. Because according to them,these stocks are having tremendous potentials and not overpriced,which are good for investments
