PEG < 1.0. The P/E is a smaller number than the percentage growth rate it is divided by — the price pays less than one turn of multiple per point of growth.
PEG 1.0–2.0. The P/E is one to two times the growth rate. PEG 1.0 is the reference point where the two are equal.
PEG > 2.0. The P/E is more than twice the growth rate. Whether that is worth paying depends on how durable the growth is, which the ratio does not measure.
