The Price to Earnings Growth and Yield Ratio, or PEGY Ratio, tries to find cheap growth companies which are paying good dividend yields and is calculated as the PE Ratio divided by the sum of the Earnings Growth Rate and the Dividend Yield. This is measured on a TTM basis and earnings are diluted and normalised.
This is used by Peter Lynch and inversely by John Neff (who calls it the total return ratio).
For stocks that pay a substantial dividend, the PEGY may be an even better measure than PEG.
As with the PEG, the numbers are based on consensus analyst forecasts and therefore subject to forecasting errors.
For a guide on how to use the PEGY ratio in your investing, check out This is measured on a TTM basis and earnings are diluted and normalised.
| Ticker | Name | PEGY | StockRank™ |
|---|---|---|---|
| LON:SERE | Schroder European Real Estate Investment Trust | 0.03 | 85 |
| LON:JUST | Just | 0.04 | 38 |
| LON:MARS | Marston's | 0.04 | 85 |
| LON:APAX | Apax Global Alpha | 0.05 | 49 |
| LON:AAU | Ariana Resources | 0.06 | 23 |