Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Too big for the kindergarten desk,

I doubt that any other PEG is exactly like the Fool PEG. Most PEG's that I see used on the Net (Yahoo and MSN Investor) use the Current P/E Divided by next year's growth projections. Now that doesn't take into account how much the company is growing this year or the year after next. You see, a company might not be expected to grow much next year but may have a longer term growth expectation that is much higher.

To get earnings data to do your own Fool PEG all you need is some growth projections for the company and the earnings for the last 4 quarters. Now the math is kind'a tricky, but can be done with a calculator fairly easily once you know how.

A lot of great companies are overvalued because they have supported great earnings in the past, and investors are expecting the world from them in the future. Great companies that are undervalued by PEG don't just fall off trees. You need to be very patient, and may have to wait a little while before you find that gem of a company.

I've been using my own variation of the Foolish 8 and PEG strategy for about nine months now and have not found a company that has sold for under 0.5 for very long. All the companies I hold right now are around 0.7 to 1.0.

Later, CV
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.