Growth at a reasonable price — PEG ratio below 1

The PEG ratio divides the P/E by the profit growth rate, and Peter Lynch popularised it as a way to compare growth companies: a stock on 20× earnings growing at 30% a year (PEG 0.67) can be cheaper than one on 12× growing at 5% (PEG 2.4). The weakness is that it uses past growth as a proxy for future growth. This screen requires a quality floor (ROE ≥ 15%) so the growth is at least backed by a profitable business.