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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Stock Farmer who wrote (43562)6/16/2001 3:50:30 PM
From: Mike Buckley  Read Replies (1) of 54805
 
John,

Thanks for coming to a swift understanding of your role among the nits. :)

PEG is fiction and has no basis in reality.

Can you expand on that?

I realize that a PEG ratio isn't entirely based on fact and is largely based on an estimation of the future. However, since it is partly grounded in an historic price and historic earnings, to say that it has no basis in reality and is entirely fictional seems to be an overstatement. Moreover, all of my above observations would also apply to a DCF.

--Mike Buckley
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