PEG ratio less than 0.5 indicates that the stock is undervalued and can be a great investment bet. PEG ratio greater than 0.5 but less than 1 indicates that the stock is either undervalued or reasonably valued, based on other parameters it can be a good investment bet. PEG ratio greater than 1 but less than 2 indicates that the stock is reasonably valued. To take any investment decision, make sure to check other parameters. PEG ratio greater than 2 indicates that the stock is overvalued.
