Comparative study of the PEG and P/E ratio in explaining the stock cost based on industry in Tehran Stock Exchange

The present paper is a comparative study of the PEG and P/E ratio in explaining the stock cost based on industry in Tehran Stock Exchange. Research population included 14 industry, 715 companies which were examined during 5 years from 2009-2014. In this study, the P/E (Price/Earning) and growth ration during three years earning (EPS) have been used to compare the fixed ration of P/E and PEG. Findings of the study showed the ratio of PEG with the market real price. The precision of each ration of P/E and PEG were examined using paired t-test the result of which showed that P/E model has a higher precision.

کلیدواژه ها:

R/E ratio ، PEG ratio ، growth ratio and stock price