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To: Uncle Frank who wrote (5461)11/29/2000 7:10:46 PM
From: kas1  Respond to of 10934
 
In other words, how would the s&p500 and the compx compare in terms of PEG.

Not sure how long it's been since I've last whined about PEG, but watch out -- the relationship between compounded growth rate and discounted future profits is far from linear, and so it's a mistake that PEG's should remain constant across stocks. I see PEG as grasping at straws, as the Motley Fool crowd attempting to devise a numeric measure of how much one should pay for growth. Sure, you can believe in it if you want (possibly just because a lot of other people use it as a yardstick), but its intrinsic value is minimal.