I've been doing some reading lately on discounted cash flow valuation and I'm starting to think there may be a fundamental problem with the PEG ratio because there is no consideration for risk. For example, you may conclude that stock A is cheaper than stock B because it has a lower PEG ratio, whereas stock A may actually have more risk associated with it and is fairly valued.I think I may have an answer to this fundamental problem that I posted here on the Valuation board:http://boards.fool.com/Message.asp?mid=26414109I'd appreciate some feedback from the Foolish community to see if I'm on to something here, or heading down the wrong path.Thanks!
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra