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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (9348)	11/23/1999 1:20:00 PM
From: Larry Grzemkowski	Read Replies (1) \| Respond to of 18928

Hi Keith Here is a very helpful site. It?s the Fool?s YPEG calculator: fool.com The data I picked up this morning from YHOO on QTRN was: Price=23.68 Last quarter earnings=0.27 Next quarter earnings=0.31 This years earnings estimate=1.21 Next years earnings estimate=1.45 Next 5 years earnings growth=26.5% So you go to the Fool YPEG calculator and enter: Forward estimate enter 1.45 5 year growth enter 26.5 Current price enter 23.68 Now when you hit the calculate button you get a YPEG of 0.6163 which is the year forward PEG or pe to growth ratio. Now if you take the current price of 23.68 and divide by 0.6163 you get 38.42, which is fair value. I like Dave?s method which is Next years earnings estimate times the 5 year growth estimate which is 1.45 x 26.5 = 38.42 which is fair value. Dave's way and YPEG are the same thing. Like I said I like Dave's way because it give you the price of the stock not a ratio. Cheap per Dave is fair value divided by 1.4 or in this case 27.45. I hope this helps. Larry G