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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MarkM who wrote (4372)	7/2/1998 3:52:00 PM
From: Daniel Chisholm	Read Replies (1) \| Respond to of 78748

Whither PEG? I also asked that: Message 4954253 and was answered: Message 4963963 About the only thing good about GPE or PEG is that it get the direction correct. All other things being equal, more growth is worth paying a higher P/E for. But as soon as you start to consider things like risk, quality of earnings, applicability of GAAP earnings, inherent nonlinearities in such a simple relationship, etc, you quickly realize why you ought not use PEG. Yet the thing that amazes me is that I have seen professional analysts use it in their published buy reports. Amazing! - Daniel