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Learning to Invest / Fool Ratio [PEG]

URL:  http://boards.fool.com/i-dont-understand-whats-so-special-about-this-29194853.aspx

Subject:  Re: Obsession with ratio Date:  3/25/2011  7:52 AM
Author:  rwde Number:  2001 of 2003

I don't understand. What's so special about this "Fool Ratio"?

Simply put, it's a way to evaluate the price of a stock with respect to the company's growth potential as represented by current and estimated future earnings

If you haven't read the Fool's School section on the PEG ratio, doing so may help your understanding.
http://www.fool.com/school/thefoolratio.htm

A closely related measure, YPEG, is intended for use with larger companies.

http://www.fool.com/School/TheYPEG.htm

-R
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