Hello,
I have a question on figuring out the PEG ratio. The question is providing the Market Cap, Enterprise Value, Net Income, and the Dividend Payout Ratio. I understand that in order to get the PEG ratio I need the PE / annual growth rate. I understand that I can get the P/E by dividing the Market Cap / Net Income. However, how can i find the growth rate? I was thinking I can take the formula, G = (1-dividend payout ratio) x ROE??? However, how would I find the ROE? Would I need some additional information in this problem? Like Debt, Debt/Total Capitilization, Debt/Equity???? Please help!
Thanks,
Hanz
I have a question on figuring out the PEG ratio. The question is providing the Market Cap, Enterprise Value, Net Income, and the Dividend Payout Ratio. I understand that in order to get the PEG ratio I need the PE / annual growth rate. I understand that I can get the P/E by dividing the Market Cap / Net Income. However, how can i find the growth rate? I was thinking I can take the formula, G = (1-dividend payout ratio) x ROE??? However, how would I find the ROE? Would I need some additional information in this problem? Like Debt, Debt/Total Capitilization, Debt/Equity???? Please help!
Thanks,
Hanz