I've never bought a stock before, isn't a PEG of 2.27 pretty expensive?
If you're buying a stock for earnings growth a 2.28 PEG is fairly high, but that only tells part of the story. PEG focuses on earnings growth to the exclusion of free cash flow. When you combine earnings growth, and money returned to shareholders through buybacks and dividends, the PEG ratio becomes a far less relevant metric for valuing a company like PG. Investors also put a premium on the stability of PG's earnings stream. That is to say, if you look out 5 years, this stock doesn't look particularly expensive at today's prices, and you can be fairly confident that the company will be able to meet earnings estimates over the long term.
JNJ has the PE ratio (23) of a growth stock--but its not. The EPS has been dropping steadily while the price goes up. Dividends are popular right now, but the PE ratio will come backtoward the mid teens. With the negative earnings growth, I suspect that the price will drop to make it happen.