A real world example of where you can see the PEG ratio in action is in the stock of Apple (AAPL), which (at the time of this writing) was trading in the $650 range. The stock continues to climb, but the PEG ratio is a low .62. The reason the PEG remains low despite the higher stock price is that APPL’s PE is 15, and the growth rate is high. Once again, the price of the stock doesn’t give you any information about the valuation of the company. In APPL’s case, even a seemingly high priced stock is very inexpensive based on its PEG ratio.
