The PEGY Ratio is an investment metric that extends the PEG (Price/Earnings-to-Growth) ratio by including dividend yield. It is calculated as P/E ratio ÷ (Earnings Growth + Dividend Yield). By factoring in both expected earnings growth and dividends, it gives investors a more complete picture of a stock's valuation, especially for companies that return significant cash to shareholders. A lower PEGY Ratio generally suggests a stock may be undervalued relative to its growth and income potential, while a higher ratio implies it may be overpriced.