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rharmelink

More detail on the shortterm PEG? Something I wrote up many years ago: A 1year PEG value can be mathematically shown to be nonsense. 


Jrinne

Randy, Thank you for this irrefutable mathematical proof!!! Probably puts the final nail in the coffin of PEG (for me). The other problem I have noted with PEG (in addition to your post now) is there are too many NAs for my ports. Much appreciated. Best, Jim From time to time you will encounter Luddites, who are beyond redemption. de Prado, Marcos López on the topic of machine learning for financial applications 

Edit 3 times,
last edit by
Jrinne
at Sep 11, 2020 11:06:15 AM

marco

We use NextY EPS for short term peg, not Forecast 12month EPS, and we calculate the growth rate by adjusting for how many quarter till the end of NextY. But thanks for the feedback. I'm not a fan of PEGs anymore either. They can be very volatile too since they are based on EPS. Much prefer forward looking Pr2SalesNTM now. Portfolio123 Staff. 


