| Feature | Forward P/E Ratio | PEG Ratio |
|---|---|---|
| What it measures | Price relative to next year's earnings. | Price relative to earnings and growth rate. |
| The Formula | Stock Price ÷ Expected 12-Month EPS | Forward P/E ÷ Expected Annual Growth Rate |
| Best used for | Comparing mature companies in the same sector. | Comparing high-growth tech or momentum stocks. |
| The Blindspot | Ignores whether a company is growing at 5% or 50%. | Growth estimates can be highly inaccurate. |
| Good Value Benchmark | Varies widely by industry. | A PEG ratio under 1.0 is |
| Market Response | Quarter | Election Year | President Year | Notes |
| Positive | Q4 | Yes | P0 | Optimism |
| Negative | Q1 | No | P1 | Trade War Talk |
| Negative | Q2 | No | P1 | Tariffs Activated |
| Positive | Q3 | No | P1 | Tariff Bluffed or Imposed |
