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To: Mohan Marette who wrote (38599)	4/21/1998 9:52:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Mohan, PEG stands for the ratio of the P/E to the growth rate. According to some analysts, a PEG of 1 means a stock is fairly priced, a PEG >1 means it is overpriced and a PEG <1 mean it is underpriced. The problem with this approach is that it ignores discount rates and the standard deviation of expected returns. For example, given two identical stocks, A and B you would expect A to command a higher price (and thus a higher PEG) if earnings were a "sure thing". TTFN, CTC