1

peg

noun \ ˈpeg \
Updated on: 20 Nov 2017

Definition of peg

1 a :a small usually cylindrical pointed or tapered piece (as of wood) used to pin down or fasten things or to fit into or close holes :pin, plug
b British :clothespin
c :a predetermined level at which something (such as a price) is fixed
2 a :a projecting piece used as a support or boundary marker
b :something (such as a fact or issue) used as a support, pretext, or reason
  • a news peg for the story
3 a :one of the movable wooden pegs set in the head of a stringed instrument (such as a violin) that are turned to regulate the pitch of the strings — see violin illustration
b :a step or degree especially in estimation
4 :a pointed prong or claw for catching or tearing
5 British :drink
  • poured himself out a stiff peg
  • —Dorothy Sayers
6 :something (such as a leg) resembling a peg
7 :throw; especially :a hard throw in baseball made in an attempt to put out a base runner

Examples of peg in a Sentence

  1. Her coat hung on a peg by the door.

  2. took the arrogant student down a peg

Recent Examples of peg from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'peg.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of peg

Middle English pegge, probably from Middle Dutch

peg Synonyms


2

peg

verb

Definition of peg

pegged; pegging
transitive verb
1 a :to put a peg into
b British :to pin (laundry) on a clothesline
2 :to attach or fix as if with a peg: such as
a :to pin down :restrict
b :to fix or hold (something, such as prices or wage increases) at a predetermined level or rate
c :to place in a definite category :identify
  • was pegged as an intellectual
3 :to mark by pegs
4 :throw
intransitive verb
1 :to work steadily and diligently often used with away
2 :to move along vigorously or hastily :hustle

Examples of peg in a Sentence

  1. Is the tent pegged down all the way?

  2. peg the price of wheat at its current level

  3. His bonus is pegged to how many sales he makes each year for the company.

Recent Examples of peg from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'peg.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of peg

1543


3

peg

adjective
variants: or pegged

Definition of peg

:wide at the top and narrow at the bottom
  • peg pants

First Known Use of peg

1681


PEG

abbreviation

Definition of PEG

polyethylene glycol

Other Biochemistry Terms


Financial Definition of PEG

PEG

What It Is

The PEG ratio is a derivative of the P/E ratio that takes into account future growth in earnings.

How It Works

The formula for the PEG ratio is:

PEG Ratio = Price-to-Earnings (P/E) Ratio / Annual Earnings Per Share Growth

The PEG ratio uses the basic format of the P/E ratio for a numerator and then divides by the potential growth for the stock. The two ratios may seem to be very similar but you can see the obvious difference with a calculation.

Let us take Company XYZ stock. Say XYZ is currently trading with a P/E ratio of 30. Typically, this would be considered an "expensive" stock. But let's also assume analysts forecast growth in earnings per share of +40% for the next year.

In this case, XYZ's PEG ratio would be:

PEG Ratio = 30 (P/E ratio) / +40% (earnings growth) = 0.75

A rule of thumb is that any PEG ratio below 1.0 is considered to be a good value. So even though XYZ is highly valued based on the P/E ratio, the PEG ratio says that it is undervalued relative to its growth potential.

For more explanation of how to use the PEG ratio in conjunction with other valuation ratios, please read our educational article Don't Be Misled By the P/E Ratio.

Why It Matters

The PEG ratio acts as a measure of value that takes into account future growth. Using this metric, investors can gauge whether high-growth stocks may be undervalued, even if they don't appear so with the more common P/E ratio.



PEG Defined for English Language Learners

peg

noun

Definition of peg for English Language Learners

  • : a small piece of wood, metal, or other material that is used to hold or fasten things or to hang things on

  • : a wooden piece in a musical instrument (such as a violin) that is turned to tighten or loosen a string


peg

verb

Definition of peg for English Language Learners

  • : to fasten (something) with pegs

  • : to put a peg into (something)

  • : to keep (something, such as a price) at a particular level or rate


PEG Defined for Kids

1

peg

noun \ ˈpeg \

Definition of peg for Students

1 :a small stick or rod (as of wood or metal) used especially to fasten things together or to hang things on
2 :a piece driven into the ground to mark a boundary or to hold something
  • He pounded in a peg for a tent rope.
3 :a level in approval or esteem
  • The new kid took that bragger down a peg.

2

peg

verb

Definition of peg for Students

pegged; pegging
1 :to mark or fasten with a small stick or rod driven into a surface
2 :to work hard
  • I keep pegging away at my job.

Medical Dictionary

PEG

abbreviation

medical Definition of PEG



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