SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 127.61+0.8%Dec 23 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chuzzlewit who wrote (51758)7/16/1998 9:02:00 PM
From: Lee  Read Replies (1) of 176387
 
Hi Chuzz, ..Re:<<Normalized PEG>>

I think that using a normalized PEG with respect to the S&P PEG is an excellent idea in order to get a fast fix on a company's prospects relative to a comparable group. I was going to say so sooner but wanted to think about the suggestion of using a more narrow measure such as the PEG of the NAZ or the NAZ 100. But after considering the population of each group, I think the S&P provides a better domain.

If you only consider the NAZ, there are more than 6000 companies there, many with very low market cap and maybe small growth prospects. This would tend to distort the outcome. If you only consider the NAZ 100, I think again the outcome would be distorted, relative to the available selection, because of the technology weighting. But the S&P provides a broad domain of companies with similar market cap and varying growth prospects, so in order to get a big picture, I would prefer the S&P. Does this make sense to you?

So, bottom line is I think you've come up with an excellent way to quickly determine where a company fits in with the subset of those with similar market cap and growth prospects.

Regards,

Lee
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext