The Relationship between PEG Ratio and Dividend Payout Ratio

• Main Author: 王玉珠
• Other Authors: 郭志安
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/41759708566519731057

碩士 === 國立彰化師範大學 === 商業教育學系 === 99 === Abstract Owing to the PE ratio does not reflect the future earnings growth, so the combination of PE ratio and future earnings growth of PEG gradually have been taken seriously. Analysts believed that the critical value of PEG was 1. However, this study actually discovered that under different dividend payout ratio and return on equity, PEG=1 is not an appropriate benchmark value. The empirical analysis also shows that the relationship graph is a nonlinear U-shape. When R (required rate of return) and ROE (return on equity) fixed, the relationship between PEG and stock dividend yield or the relationship between PEG and cash dividend yield are all U-shape. When stock dividend yield is bigger, PEG will be smaller and even lower than 1. On the contrary, when the cash dividend yield is bigger, PEG will be bigger and far away from 1. Keyword：PE Ratio、PEG Ratio、Dividend Payout Ratio