Key Metrics for Long-Term Investors — 5Y Return, Yield & PEG
5Y Average Return
This metric measures the average annual total return (price change + reinvested dividends) over the past five years.
It’s like a bank’s annual interest rate, but for your fund.
Example:
If an ETF grew from $100 to $161 in five years,
that equals roughly +10% per year → 5Y Avg Return = 10.0%
5Y Average Dividend Yield
Shows how stable a company or fund’s dividend policy is.
If a stock paid around 1.5% annually for each of the past five years,
then 5Y Avg Dividend Yield = 1.5%
Useful for income-focused investors.
PEG Ratio (5-Year Expected)
The PEG Ratio tells you if a company’s price is reasonable compared to its expected earnings growth.
Formula:
PEG = Forward P/E ÷ 5Y Expected EPS Growth
Example:
- Forward P/E = 30
- EPS Growth (5Y expected) = 15%
PEG = 30 ÷ 15 = 2.0
Interpretation:
- PEG < 1.0 → possibly undervalued
- PEG ≈ 1.0 → fairly valued
- PEG > 1.0 → potentially overvalued
FinImpulse Insight:
Use long-term metrics to see beyond short-term volatility and make data-driven decisions.
We provide the data — you decide what’s right.
