tianxin

Page 491 on the CFA equity book states that "Stocks with lower PEGs are more attractive than stocks with higher PEGs, all else being equal".

So the way I see it, investors should prefer a stock with a lower P/E than a higher P/E (less likelihood of the stock being overvalued). So, for a given quantity of growth, a lower PEG is better than a higher PEG.