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To: stock bull who wrote (141608)	9/8/1999 3:22:00 PM
From: D.J.Smyth	Read Replies (2) \| Respond to of 176387

stock bull. the "pe" was a measuring stick made popular by a well known valueman Ben Graham in the 30s. if one believes that little has changed relative to stock valuation methods since the 30s, or even further back, 1900, then the pe remains a viable form of measuring a company's valuation. However, relative to today, Graham's "pe" measurement does not properly account for "time", or the time a company can move from $0 to $X sales. Graham assumed in the 30s that it would take a company an absolutely defined amount of time to reach maximum sales (fairly steady growth). obviously, the time by which companies can move from $3billion in sales to over $20billion has been extremely shortened due to many factors; one world and now the internet. So, how can a "PE" accurately measure time to maximum sales? PEG ratio more accurately reflects the measure of time in today's environment. The belief that a company can move from $20billion to $40billion in the same reflected "absolute" time of Ben Graham, is absurd in today's environment. Just watch, with the expansion of the internet how quickly a company can double sales even from the $20billion level - especially with the world becoming one market.