what does a negative peg ratio indicate 
a negative peg can result from either negative earnings losses or a negative estimated growth rate either case suggests that a company may be in trouble the bottom linewhile the p e ratio is more commonly used by investors the peg ratio improves upon the p e by incorporating earnings growth estimates this provides a fuller picture of a company s relative value in the market however because it relies on earnings estimates having good estimates is key a bad forecast or assumption or naively projecting historical growth rates into the future can produce unreliable peg ratios 