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```The PEG has no sound investment basis.

In fact, a 1-year PEG value can be mathematically shown to be nonsense.
That's because both the P/E ratio and the growth rate are based on the same
thing -- current earnings.  They cancel each other out, leaving just price
versus the change in earnings.

That is, given:

P    = Current price
EPS0 = Latest 12-month EPS
EPS1 = Forecast 12-month EPS

We get:

P                  P
------             ------
EPS0               EPS0                   P
PEG = ---------------- = ----------------- = -------------------
EPS1               EPS1 - EPS0   100 * (EPS1 - EPS0)
100 * ---- - 100   100 * -----------
EPS0                   EPS0

Examples:

#1:  Given:  Stock = \$9
EPS   = \$6
Estimated EPS = \$7
Then:   P/E = \$9 / \$6 = 1.5
Growth rate = \$7 / \$6 = 16.7%
PEG = 1.5 / 16.7 = 0.09

#2:  Given:  Stock = \$9
EPS   = \$1
Estimated EPS = \$2
Then:   P/E = \$9 / \$1 = 9
Growth rate = \$2 / \$1 = 100%
PEG = 9 / 100 = 0.09

I know which stock I'd rather own!
```