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To: Stock Farmer who wrote (42105)3/15/2001 11:16:16 PM
From: Prognosticator  Read Replies (1) | Respond to of 64865
 
I think now grok your analysis, but I'm a little confused by the finally:

Finally, you will also note that PE*e [the basis of PEG] is a number without relationship to value... Go back through the equations above and try to figure out why.

The definition of PEG that I have seen is PE/e, where e is earnings growth, expressed in percent, not as a fraction, and the goal is for a PEG below one (implying high growth). What PE*e could possible mean is beyond me. Did you typo, or did you mean it, in which case what interpretation could anyone give to PE*e?

P.

P.S. With your obvious proclivity for mathematical analysis you're no relation to the great Claude Shannon are you?