lowest PEG Ratio NSE BSE indian Stocks as on 08 jan 2010 most undervalued indian stocks in 2010

lowest PEG  Ratio NSE BSE indian Stocks  as on 08 jan 2010
most undervalued indian stocks in 2010

What is PEG ratio?

The PEG ratio (Price/Earnings To Growth ratio) is a valuation measure for the earnings generated per share (EPS) and the company’s growth.

In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates

The PEG ratio is considered to be a convenient approximation. It was popularized by Peter Lynch, who wrote in “One Up on Wall Street” that “The P/E ratio of any company that’s fairly priced will equal its growth rate”, i.e. a fairly valued company will have its PEG equal to 1.

Source: http://en.wikipedia.org/wiki/PEG_ratio
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For example you’re analyzing a stock trading with a P/E ratio of 20 . Suppose the company’s earnings per share (EPS) have been and will continue to grow at 15 percent per year.

Divide the P/E ratio (20) by the growth rate (15), the PEG ratio is computed to be 1.33

We have USED PREVIOUS YEARS PAT GROWTH AND CURRENT PE TO ARRIVE AT
most undervalued indian stocks in 2010
Please check the current PE and PAT growth rates at NSE BSE sites before taking investing decision as data may change due to splits/bonus.