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Author: jbking Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2003  
Subject: Re: Fool Ratio Date: 2/16/2007 1:18 PM
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Greetings,

Care to share the data and formula you have for this?

http://quicktake.morningstar.com/stocknet/ForwardValuation.aspx?Country=USA&Symbol=PLA&stocktab=valuation shows a PEG of 12.0 for Playboy.

The definition of the PEG from Morningstar:
" A stock's price/earnings ratio divided by the company's projected EPS growth. The price/earnings ratio used in the numerator of this ratio is calculated by taking the current share price and dividing by the mean EPS estimate for the current fiscal year. A PEG Ratio means nothing in itself, so for comparison we show the industry and S&P 500 averages."

I would note that there are a couple of requirements for computing a PEG I think:

1) P/E has to exist and be meaningful, e.g. if E is less than or equal to zero then this isn't meaningful.

2) There has to be a positive earnings growth rate or again the denominator becomes an issue.

Regards,
JB
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