The PEG of CK Hutchison Holdings Limited is 0.76
Price/earnings to growth (PEG) ratio is a stock’s P/E ratio divided by a predicted growth rate of its earnings for a time period of 5 years.
= forward PE / 5-year EPS growth rate
The PEG ratio is calculated by dividing the P/E ratio by the company's expected earnings growth rate in the next 5 years. Since using just the P/E ratio would make high-growth companies appear overvalued relative to others, the PEG ratio is considered to be a convenient approximation. PEG is a widely employed indicator of a stock's possible true value.
Similar to P/E ratios, a lower PEG means that the stock is undervalued more. It is favored by many over the price/earnings ratio because it also accounts for growth. The PEG ratio of 1 is sometimes said to represent a fair trade-off between the values of cost and the values of growth, indicating that a stock is reasonably valued given the expected growth. A crude analysis suggests that companies with PEG values between 0 and 1 may provide higher returns. A PEG Ratio can also be a negative number if a stock's present income figure is negative, (negative earnings) or if future earnings are expected to drop (negative growth). PEG ratios calculated from negative present earnings are viewed with skepticism as almost meaningless, other than as an indication of high investment risk.
CK Hutchison Holdings Limited, an investment holding company, operates in ports and related services, retail, infrastructure, energy, and telecommunications businesses worldwide. The company invests in, develops, and operates ports, which operate 283 berths in 52 ports spanning 26 countries; and provides logistics and transportation-related services, such as cruise ship terminals, airport operations, distribution centers, rail services, and ship repair facilities. It also operates a network of 16,167 retail stores that offer personal care, health and beauty products, food and fine wines, consumer electronics, and electrical appliances in Asia and Europe, as well as operates supermarkets; and manufactures and distributes bottled water and beverages under the Watsons Water and Mr. Juicy brands in Hong Kong and Mainland China. In addition, the company invests in energy infrastructure, transportation infrastructure, water infrastructure, waste management, energy-from-waste, household infrastructure, and other infrastructure related businesses primarily in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Australia, New Zealand, and Canada. Further, it provides mobile telecommunications and data services, as well as operates as an integrated energy company in the United States and the Asia Pacific. Additionally, it manufactures and sells pharmaceuticals and healthcare products; researches, develops, manufactures, commercializes, markets, and sells nutraceuticals, pharmaceuticals, and agriculture-related products; provides marine construction and ship repair yard, water and sewerage, gas distribution, and aircraft maintenance services; and leases rolling stocks. CK Hutchison Holdings Limited was founded in 1828 and is based in Central, Hong Kong.