9 Comments
User's avatar
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.”

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

Parth Patel's avatar

the gold nugget shipped here

Iskan R.'s avatar

Thanks 😀

Noni Rex's avatar

Very helpful

Iskan R.'s avatar

thanks Noni!

Noni Rex's avatar

You're welcome

David Szabo's avatar

Great article on how to screen (growth) companies!

Iskan R.'s avatar

Thanks David