"Always Learning",
your motto; mine too,
cheers
-
PEG Ratio
(i read a bit more yesterday.
PEG, like all ratios, with its own limitations, is widely used by many value-investors)
What PEG says in a nutshell:
PE/Growth-Rate %, (YoY, Year on Year)
If PEG
= 1, is fair value
<1, undervalued
>1, overvalued
For e.g.
PE - 100, 50, 30, 10, 5
GR(%) - 200%, 100, 50, 10, 5%
PEG ratios:
100/200 = 0.5 , undervalued
100/100 = 1.0, fair value
30/20 = 1.5 , overvalued
10/5 = 2 , run for your life !
Apply PEG to M1 to M4, and you will SMILE =)
cheers!
-
- The Greatest Investors:
James D. Slater | Investopedia
www.investopedia.com/university/greatest/jamesslater.asp Cached
Jim Slater is credited with inventing the price-earnings to earnings-growth ratio ( PEG) and popularizing its use in America through his book, "The Zulu Principle" ...
http://www.investopedia.com/university/greatest/jamesslater.asp
J Slater
copyright link/finance/personalfinance/investing/shares/10914962/How-to-invest-using-Jim-Slaters-stock-market-formula-and-beat-the-market-by-a-factor-of-20.html
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