9 Comments
User's avatar
David Szabo's avatar

Great article on how to screen (growth) companies!

Expand full comment
Iskan R.'s avatar

Thanks David

Expand full comment
Quanta 72's avatar

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.”

Expand full comment
Iskan R.'s avatar

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

Expand full comment
Parth Patel's avatar

the gold nugget shipped here

Expand full comment
Iskan R.'s avatar

Thanks 😀

Expand full comment
Noni Rex's avatar

Very helpful

Expand full comment
Iskan R.'s avatar

thanks Noni!

Expand full comment
Noni Rex's avatar

You're welcome

Expand full comment