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Hello,
I've noticed that the "Unemotional Growth" model relies on the EPS percentile from IBD. Why is this valuable by itself? I would think that this parameter does not have much relevance without also considering price (hence P/E)?

Could someone explain?

Thanks in advance,
Rich Hefter
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<<<Hello,
I've noticed that the "Unemotional Growth" model relies on the EPS percentile from IBD. Why is
this valuable by itself? I would think that this parameter does not have much relevance without also
considering price (hence P/E)?

Could someone explain?

Thanks in advance,
Rich Hefter>>>

You make a very legitimate observaton. If you want
to invest based on the "fair value" of a stock you
would looks at the PEG - the ratio of PE to earnings
growth. (and various other measures of value)
The UG model is just a model for stock picking that
seems to work nicely. All of the basic workshop
models tend to be fairly straight forward screens
that stop short of true stock valuation. I find
that they run counter to the Fool philosophy of
studying a company carefully before you invest, and
getting in for the long haul. We read time and again
that the UG and others are just preliminary stock
picking screens, but their prominence on the site
I'm sure is tempting many (myself included) to rely
on the mechanical screens alone.

Elan
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