Here's a question for others who are more knowledgeable and let me also state I realize that practically any indicator of a stock isn't always a guarantee, it could be lagging, and sometimes just plain isn't an accurate representation of the company.



With that said, what might cause a very large, well established company to have a rather low PEG ratio?  I'm talking around 0.5.  Again, let me emphasize, large, very well established international company.  By all indications I can see I believe they're poised to continue to grow and succeed in their business.

Could represent a value trap. Their earnings growth could be a good number but their stock may have gotten beaten up a lot more recently, what was their PEG over the last 5 years.

You could also post the ticker.

There is a lot that can affect the PEG ratio, regardless of company size, reputation, etc. It depends a lot on industry and company type. For example, utilities companies, will often have limited growth (they've already maxed out their market share) but steady earnings quarter over quarter. Growth factors in quite a bit when valuing a company's future potential but its not always necessary for a company to consistently have solid earnings. A low PEG can be a positive indicator, it could signal a company is undervalued based on its earnings. Since the divisor in the equation is the growth potential, a higher growth coefficient would cause the ratio to be low, so low is/can be good.

*edit* Simple answer: low PEG is good (<1), it means the growth expectation is high compared to the company's PE.