PEG Ratio (TTM) Formula in Excel

Looking to accurately gauge a stock’s valuation by factoring in its earnings growth rate? The PEG Ratio (TTM) formula in Excel with MarketXLS allows you to do just that. By integrating real-time and historical data, you can make more informed investment decisions. This function is especially useful for quickly identifying potential growth opportunities or overvaluation scenarios.

Understanding PEG Ratio (TTM)

• Purpose and Use Cases
  The PEG Ratio (TTM) measures the relationship between a company's Price/Earnings ratio and its earnings growth rate over the past 12 months. This metric helps you see if a stock’s price is justified by its earnings growth.

• Key Benefits

  • Offers a quick snapshot of value vs. growth.
  • Assists in comparing stocks with different growth rates.
  • Underlines potential overvalued or undervalued equities.

• When to Use
  Use the PEG Ratio (TTM) when you need to assess whether a high P/E ratio is justified by strong earnings growth, or confirm if a lower P/E ratio might indicate slower growth.

Syntax and Parameters

Use the PEGRatio function in Excel to calculate the PEG Ratio (TTM).

=PEGRatio(Symbol)

• Return Value
  Returns a numeric value representing the stock’s Price/Earnings ratio divided by its earnings growth rate over the trailing twelve months. If the symbol or license is invalid, it returns "NA".

?? Note: You must have a valid MarketXLS license for this function to work properly.

Examples and Usage

Below are common scenarios for using the PEGRatio function.

1. Basic Example
   Retrieve the PEG Ratio (TTM) for Microsoft:

   =PEGRatio("MSFT")

2. Index Example
   Check the PEG Ratio for the S&P 500 Index:

   =PEGRatio("^SPX")

3. Option Symbol
   Evaluate the PEG Ratio (TTM) for an option symbol (if applicable data is available):

   =PEGRatio("@MSFT 110122C00020000")

4. Crypto Example
   Get the PEG Ratio (TTM) for a crypto pair:

   =PEGRatio("BTCUSD:DEFAULT")

? Pro Tip: Combine other MarketXLS functions (e.g., EPS, Market Capitalization) with PEGRatio to create a more holistic dashboard for fundamental analysis.

Common Questions

1. What happens if I enter an invalid symbol?

   • The function returns "NA" to indicate an error or missing data.

2. Why am I getting the same value repeatedly?

   • Data may be cached or the market data may not have changed. MarketXLS updates data at specific intervals.

3. Can I use date references with the PEG Ratio (TTM)?

   • This function only requires a symbol parameter and does not support specifying dates for historical PEG Ratio calculations. You should use appropriate historical functions or other MarketXLS features for date-based queries.

4. How do I improve performance when calling multiple symbols?

   • Use efficient Excel practices such as grouping formulas, caching data, or reducing the frequency of refresh to lighten API calls.

5. What related functions are helpful for deeper stock analysis?

   • Market Capitalization (On Demand): Assesses the overall value of a company’s shares.
   • EPS (On Demand): Evaluates the profitability of the company.
   • Shares Outstanding (On Demand): Determines how many shares are currently held by shareholders.
   • Paydate (On Demand): Identifies the scheduled date of dividend payment.
   • Earnings Per Share (TTM): Provides EPS data over the trailing twelve months.

By leveraging the PEG Ratio (TTM) formula in Excel with MarketXLS, you’ll have invaluable insights into a stock’s performance and growth potential. This helps simplify valuation comparisons and sharpen your investment decisions.