New Delhi, Aug. 20 -- When markets swing wildly every other day,many investors rush to sell. That's when value investors step in to scoop up quality stocks at bargain prices.

Sounds simple, right? Not always.

While the strategy may sound straightforward, it comes with risks. Misjudging value opportunities can lead to investing in value traps. These are stocks that seem attractive at first but continue to underperform because the issues pulling their prices down aren't temporary.

That's where the PEG ratio can be useful.

What is the PEG ratio?

The PEG ratio, or price/earnings to growth ratio, is a valuation metric that helps investors assess if a stock is undervalued or overvalued by considering both its current earnings and its expec...