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Author: thinkerdoer Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2003  
Subject: Figuring the PEG ratio Date: 2/22/2000 9:36 AM
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I posted this question to the discussion board for Flextronics, which I'm considering buying, and elsewhere, but this seems to be the appropriate to post this question.
I'm good with numbers but I can't get my calculation of Flex's PEG ratio to agree with that of the vaunted
Pegulator.
I take $1.48 (the 12-month forward EPS estimate), minus $0.75 (the trailing 12-month EPS), then I divide by $0.75, then I multiply by 100, then (and here comes the tricky part) I take the result to the 4/5 power (because there are 5 quarters between the end of the 12-month period in the forward estimate--March 2001--and the 12-month period in the trailing EPS--December 1999). This gives me 38.959, give or take, for the growth rate over the next 5 quarters.
Then I divide that number, 38.959, by the P/E ratio, which is 52.9375/0.75, and I get 0.5519 (again, give or take) for the PEG ratio.
However, the Pegulator takes the same numbers and figures the PEG ratio to be 0.9769.
What have I done incorrectly?

Thanks for any help.
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