Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Pirah Naman who wrote (42377)	5/3/2001 1:02:34 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Pirah, Ah! Now I understand you! Thanks for clarifying that. If one is to calculate a P/E for the next year, they should do it for the next fiscal 12 months, not use a fiscal year that is part way done or one which is still a couple of quarters off. Absolutely! On the other hand, I never have understood why people use a forward PE. If the complaint about using the trailing PE is that it is about the past, using the forward PE is about an unknown future, a guess at best. By the way, for those interested in valuation, the Fool's YPEG is a PEG that uses the forward PE instead of the trailing PE. It also uses five-year estimates for the growth factor. In other words, it's based on one helluva lot of guesswork. :) --Mike Buckley