Question for you. I thought PEG already included growth rate. Why divide by it again. “The PEG Baseline (~1.18): By dividing the 33x P/E by the 28% growth rate, we get a PEG near 1.”
Thanks for the question. The PEG ratio equals the P/E ratio divided by Earnings Growth. In our case, using the forward metrics, we calculated PEG = 1.18 (33/28). So yeah, the PEG ratio shows how the valuation aligns with the earnings growth
Great article on how to screen (growth) companies!
Thanks David
Question for you. I thought PEG already included growth rate. Why divide by it again. “The PEG Baseline (~1.18): By dividing the 33x P/E by the 28% growth rate, we get a PEG near 1.”
Thanks for the question. The PEG ratio equals the P/E ratio divided by Earnings Growth. In our case, using the forward metrics, we calculated PEG = 1.18 (33/28). So yeah, the PEG ratio shows how the valuation aligns with the earnings growth
the gold nugget shipped here
Thanks 😀
Very helpful
thanks Noni!
You're welcome