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I'm new to investing for myself and have recently read both the Motley Fool Investment Guide and Investment Workboook. I'm confused by the Fool Ratio and PEG. Are they the same thing?

Thanks,
Dave
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<<'m new to investing for myself and have recently read both the Motley Fool Investment Guide and Investment Workboook. I'm confused by the Fool Ratio and PEG. Are they the same thing?>>

Yup, they're the same thing. :)

Selena
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<<'m new to investing for myself and have recently read both the Motley Fool Investment Guide and Investment Workboook.
I'm confused by the Fool Ratio and PEG. Are they the same thing?>>


I don't want to sound like a jerk or anything like that, but I want to disagree with you there. The Fool Ratio and the PEG differ in that the Fool Ratio is wrong, and flawed. It is like EVA. The guy who "invented" EVA merely stole a piece of analysis written in like 1963 or something that is found in text books. Then he trademarked it and made tons of geesh! Smart guy. I once wrote the Fool and asked about their claim of having invented the PEG ratio. They say they invented it independently. I consider the Fools pretty honest and will take their word for it. But the way the Fool ratio is calculated is wrong, I would continue to use the PEG.

Just my opinion, not trying to attack the Fool or anything like that....
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Amen: someone else who questions the alpha Fools.
Tried using PEG as a very logical metric. Business Week has a quarterly table that uses PEG. However, the BW values are much higher than the 0.5, 1.0, and 1.4 ratios espoused by the fool. Obviously a different calculation.

Problem: Can't use the Fool PEG for lack of accessible data and don't have the basis to evaluate the BW PEG ratios.

Help!
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