rephrase: The statement that PEG ratios will systematically undervalue companies with low growth rates is True. The Price/Earnings to Growth (PEG) ratio is calculated as (P/E Ratio) / (Annual EPS Growth Rate). Its fundamental premise is that a company's P/E ratio should be proportional to its growth rate, implying that a PEG ratio of 1 indicates fair valuation. However, this assumption breaks down for low-growth companies. If a company has a very low, but positive, growth rate (e.g., 2-3%), even a reasonable P/E ratio for a mature, stable company (e.g., 10-15) would result in an artificially high PEG ratio (e.g., 10 / 2 = 5 or 15 / 3 = 5). This high PEG ratio might falsely suggest that the company is overvalued, leading to its "undervaluation" by this metric, even if it's trading at a fair P/E multiple for its industry and risk profile. The PEG ratio is more effective for comparing companies with moderate to high growth rates where growth is a significant driver of valuation. For low-growth or mature companies, other valuation metrics like dividend discount models, discounted cash flow (DCF), or EV/EBITDA multiples are often more appropriate as they don't disproportionately penalize low growth