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Tom and David (if I may be so bold as to use their first names) say that small caps are fairly valued when the P/E equals the annual earnings growth rate. This makes perfect sense. I tried to calculate the Fool Ratio for DSS and came up with .66 -- if done correctly. That denotes being patient and waiting for the Ratio to drop to .60 or below (OR purchasing if the financials are in stellar condition). However, that applied to small cap companies. DSS is a mid cap company. Can the same criteria (.60 or below) be applied? Or does the bar raise (i.e., .70 or below, etc.) if the company is larger? I'm not engaging in wishful thinking here, just trying to understand how evaluation of mid caps are properly done. Has anyone else run a PEG on DSS? Perhaps I missed something. The P/S = 1.12, The P/E = 8.90 Any opinion/comment would be appreciated. Thanks!
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