Question: Using a PEG approach, what would the most appropriate P/E multiple be for a company that is expected to grow their earnings for the next

  1. Using a PEG approach, what would the most appropriate P/E multiple be for a company that is expected to grow their earnings for the next 3-5 years at 3%?

    a.

    a P/E of 3.0, using a PEG of 1.0
    b.

    a P/E of 4.5, using a PEG of 1.5
    c.

    a P/E of 6.0, using a PEG of 2.0
    d.

    none of the above as a PEG approach is not applicable here

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