PEG ratio: Six stocks with high ROE and low PEG ratio, good combination for wealth creation

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One of the most important financial ratios is return on equity and if this is combined with a lower PEG ratio, the results are even better. The selected list applies different algorithms for all BSE and ESN stocks. For the purposes of this article, we have only considered BSE stocks.

Although on a stand-alone basis, financial ratios give an indication of a company’s financial performance. However, when two ratios, especially those that cannot be easily manipulated, the list that appears features winners who have a proven track record of wealth building and consistent performance. On the list is one of the largest wealth creators in the Indian market and five other stocks where analysts have ‘strong buy’ and ‘buy’


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Sallie R. Loera