The PE-G is simply a ratio between a stock's P/E multiple and its earnings Growth rate. So for example...if Cisco (CSCO) trades at a 20 P/E...and its 2008 calendar year EPS (earnings per share) are supposed to grow by 10% over 2007's EPS...then Cisco's PEG ratio is 2.
The Lower the PEG ratio the 'cheaper' the stock's valuation.
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*Check out the International ETF PEG Ratio Table I found on Seekingalpha.com. It's a snapshot comparing the PEGs of different country ETFs (including the BRIC countries). NOTE that the 'G' in this case is actually representing 'GDP Growth':
*OF COURSE the U.S. (as represented by the IVV - the ishares S+P 500 Index ETF) looks ridiculously expensive on a 2008 GDP GROWTH BASIS...0.5% growth...lets not forget about the subprime-induced recession ! That being said, Imagine 2-3% U.S. GDP growth in 2009...all of a sudden the U.S. ETF makes for MUCH more of an attractive investment option.
*Cheapest PEGs - China, India, Russia and Brazil - CIRB !
http://seekingalpha.com/article/76092-gdp-growth-vs-p-e-for-international-etfs
Data Courtesy: Seekingalpha.com.
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