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Author: ahobbs Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2003  
Subject: A better risk-adjusted PEG ratio? Date: 2/24/2008 10:37 PM
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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=26414109

I'd appreciate some feedback from the Foolish community to see if I'm on to something here, or heading down the wrong path.

Thanks!
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