PEG

Jeffoxy

my PEG ratio with gf is 80/20 i’d say

Big-News-2704

PEG ratio is 24/7. We need a green day

TrickyBar9580

Ofc a dummy like you doesn't know what PEG is

btoned

I have a PEG of 6"

TrickyBar9580

That's fucking bullshit, Sandisk has a PEG of 0.15 LOL

Arrowhead_Pride15

Guess I wasn't clear enough. WMT is at 1/3 of MSFT market cap even though they are at 1/5 of MSFT profit level. In addition, WMT has 1/10 as much cash as MSFT and WMT has far more debt proportional to their assets/cash/market cap, way more overhead with all of their stores and having 5x more employees than MSFT etc. WMT profit margin is roughly 1/10 of MSFT. That is all objective. Subjectively, WMT has way more competition than MSFT, much more sentiment risk, much larger reliance on consumer spending, and inflation risk, broad economic health factors etc. Market cap is one factor when considering valuations, but so are current P/E, forward P/E, PEG ratios etc that ALL point to MSFT being a leaner, more profitable, faster growing business, weighted to market cap.

Ravenous_Vortex

Go on Finviz and sort stocks by PEG ratio. That's how you find the intersection between value and growth. Generally you want a PEG ratio less than one. Because growth is the denominator in this metric, the smaller the number, the better.

Safrel

I'm not talking about PEG

NormalGuyEndSarcasm

EPS (earnings per share) is not growth, it’s earnings per share. You’re thinking of PEG.

TrickyBar9580

Not surprised, HOOD has a PEG of 2.0. It's extremely overvalued

TrickyBar9580

PEG ratio 1.7. The slightest sneeze during earnings and AMD will have a bad day

TrickyBar9580

The stock still has a PEG ratio of 0.1 to 0.15 It is extremely undervalued

c-u-in-da-ballpit

Brother Kratos trades at a price to sales of 13, a PEG of 4, and a forward PE of 123. And that’s after the recent correction, which means it was even worse when you bought. There’s plenty of quality companies trading at much more reasonable valuations

Crazy_Donkies

It's not a bad sign. If you ask me, it's a great sign. 4 months ago everyone was crying about high PE ratios and forward PEs. Meanwhile, smart people were talking about solid PEG ratios. All these companies are reporting profits at or above estimates, proving forward profits and the previous PEG ratios. In short, after this earnings cycle and maybe a little later, we should start climbing again toward future reported profits goals. Maybe not all the MAG7 because they're priced for perfection, but much of the rest of the market should be fine. TLDR, we're consolidating for the next leg up.

TrickyBar9580

Get out of AMD, it has a PEG ratio of 1.6. PEG ratios over 1 are overvalued

juveyjords

Dummy. Stocks that go up are always at ATH when you buy And sandisk btw is not at all time high. It trades at $590 and it had a peak of $680 The forward profit earnings growth of Sandisk is 0.07. PEG of 1 is fair value. So Sandisk needs to reach $8220 to reach fair value Note that sandisk is a brand new company spun off from western digital. Also note that AMD doubled so so many times to reach current valuation of $250 a share. Note that AMD used to trade at $1.80 a share So shut yo dum azz up x)

MagnesiumKitten

You and your messed up PE and PEG weirdness the different PE's for UPS is good for the UPS Stock Chart it's mediocre to the Industrial/Transportaion Sector Overall it's a stock with Average Performance, so maybe not an A-lister or B-list sorta stock But it was a stock 38% undervalued a few weeks ago and now it's 20% undervalued It's got a yearly Target of 26% which is pretty good for gains UPS is a Moderate Risk though it's got problems with Gross Margins Operating Margins Revenue per Share Profitability is good Growth is mediocre Valuation is good as I said before the various PE metrics are mediocre for the sector and PEG Ratio is mediocre too the PE metrics for the stock chart is good none of that is a majorly significant factor to the valuation which is solidly a good one I would easily say UPS is a 75% yes 25% no, if I were buying the stock and if 25% yearly gains isn't good enough, it's great if you got spare money and don't see anything a bit better like Nvidia or even United Health or something else And yes, I've got severe issues with your valuation judgements on a bunch of stocks, you see to **dangerously** think PE and PEG is a huge factor in a good or bad valuation. People have different investing styles and don't take it personally, but you're a little strong with the 'minority viewpoint' here Most analysts would jump at this stock Zacks wouldn't buy it though, it's a hold for them They say good news 4 days ago, and it's not enough of a sign to buy, since hey don't like the momentum. The momentum is good but Zacks is probably looking at the EPS from 4 days ago and the Annual Report in 17 days, and don't see it worthy jumping in. I would have jumped in September 2025 if I had some spare change that week my only hesitation is that it's likely to be Average Performance and a Moderate Risk so I would hesitate 25% of this one but if my wallet was heavy, sure it's a great C-stock contender on my radar

MagnesiumKitten

rat skin: Microsoft have too high of a PEG ratio to be a buy today. It's nearly at 2 Baloney "The PEG ratio (often based on EPS) does not reflect the massive capital expenditures (up 66% in some quarters) that Microsoft is spending on AI infrastructure" "If earnings growth slows even slightly, the PEG ratio could spike" "it does not factor in macroeconomic slowdowns" /////// Zacks January 14th Also, we should mention that MSFT has a PEG ratio of 1.79. The Computer-Software industry had an average PEG ratio of 1.82 as trading concluded yesterday.

MagnesiumKitten

The PEG Ratio is good for the Microsoft Chart The PEG Ratio is mediocre compared to other companies in that sector Using the PEG ratio in isolation for valuation is dangerous And PEG Ratios vary wildly by sector we've had this debate where there are plenty of sectors out there with massive PEF rations What's expensive for a utility is cheap for a software company It also assumes the PE equals the growth rate low PEG can also be a value trap, where it shows expectations that future earnings are going to plop downwards, and not that the stock is a bargain It's only a fucking starting point "The PEG ratio is **frequently** used as a convenient rule of thumb, but its sole use can produce **wildly wrong valuations**"

Big-News-2704

The PEG ratio of crypto bros is very high rn

ratskin69

The point is Microsoft have too high of a PEG ratio to be a buy today. It's nearly at 2

MagnesiumKitten

Microsoft For the Technology sector The PE ratio for Microsoft is mediocre The Forward PE is mediocre too The PE Ratio without NRI is also mediocre For the stock itself The PE ratio for Microsoft is good The PE Ratio without NRI is good too but Microsoft still has very good valuation Microsoft's growth is about as as good as any stock could be, it's excellent The PEG Ratio for Microsoft is good for its chart and it's mediocre for the sector But a mediocre PEG does not mean a mediocre valuation, Microsoft has a great valuation //////// as for Chrisosconst's comment about Meta All the PE metrics for Meta is mediocre for PE a. for the stock b. for the stock's PE being compared to others in that sector The valuation for Meta is good It's Fairly Valued as well

MagnesiumKitten

Why don't you address the point? You seem to argue that PEG ratios that are good according to you blathering on reddit, are actually considered "**not very good**" by one of the big names in independent investing research. And when you're questioning on what type of PEG ratio, I can show you 4 different PEG Ratios by four different services, who calculate them all **differently.** I've only seen two Sells on Rolls-Royce in the past two years. Don't you think that's a bit strange considering it's just before the Q4 Earnings come out in three weeks?

MagnesiumKitten

Part II As for the PEG I told you the PEG ratio isn't important for Rolls, but I'm using a more meaningful PEG ratio for it. Rolls-Royce's PE Ratio without NRI is 47.25 and the 5-Year EBITDA growth rate is 0% So basically it's a null. Rolls-Royce Holdings PE Ratio without NRI June 2019 - Dec 2019 43.4 June 2020 - Dec 2020 At Loss June 2021 At Loss Dec 2021 1228.8 June 2022 At Loss Dec 2022 46.6 June 2023 At Loss Dec 2023 21.8 June 2024 At Loss Dec 2024 28.1 June 2025 At Loss one of the highest PE Ratios without NRI in the Aerospace and Defence Industry when it's not blanked out or at a loss. Rolls 47.35 PE without NRI Senior 34.8 BAE 27.8 Chemring 27.7 QinetiQ 19.59 //////// Overall Rolls-Royce PE Ratio Good Forward PE Mediocre PE Ratio without NRI Mediocre PEG Ratio zero Overall Valuation Terrible .......... You just read too much into simplistic PE Ratios You only seem to look at one version of the PEG Ratio when there are many different ways of calculating it. Morningstar and Zacks do it different than you and I both do it as well. And you can't even do Gross Margin Percentages properly and when you do see where you fuck up, you just go all with the dishonest gaslighting.

MagnesiumKitten

oh sure I do..... But here's the thing, it's been a week, and none of the people in your cult of Rolls-Royce thread noticed one of the brokerages put a Sell Rating on Rolls-Royce. You guys are slipping up oh yeah and Zacks has this gem, about 2 weeks ago **Why Buying RYCEY Right Now Isn't Recommended** While Rolls-Royce’s business performance is stellar, **the stock’s valuation has entered "overheated" territory**. Most investors seek stocks trading at or below their "fair value," but the current fair value estimate for RYCEY suggests the stock is **significantly overvalued**. Evidently, RYCEY is currently trading at a forward 12-month Price/Earnings (P/E) of roughly 39.3x, reflecting quite a high premium for an industrial firm as well as that of the broader market, which is trading at 23.46x. Moreover, RYCEY’s Price-to-Earnings-to-Growth **(PEG) ratio**, now sitting around 2.8, **suggests that the stock is overvalued,** meaning its current price is high relative to its expected future earnings growth. So, owning this stock now might expose investors to "valuation gravity" — the risk of a sharp pullback if earnings growth doesn't perfectly match these high expectations. .......... Aren't you the guy telling me that the PEG was peachy for Rolls?

IBangTokyoWife

No worries man. We've both got real life! I'll look into solar a bit more. I wrote it off prematurely, it seems. Lots happening around nuclear but I get that that's decades away. When you get a chance, mind walking me through why you think HWM is reasonably valued? I looked into it but maybe I'm missing something. PE 59, forward PE 49. PEG 2.4 according to NASDAQ. PS 10, PB 16. EPS and Rev growth in the last 5 years have been impressive. If it continues, maybe? How're you judging valuation on this one? Looking forward to the list Always appreciate these chats. Pretty rare on Reddit, at least for me

ratskin69

How so? Their PEG ratio is so high

ratskin69

Look at their PEG ratio before talking about how good their growth is

DrummerCompetitive20

PEG ratio of 5

_hiddenscout

Seems about right, but honestly, this where I like to use like the LLM's with this type of math. PEG's can be weird because it also depends on future eps growth. Like finviz is using the rate of 6.83% EPS growth next year while something like tradingview (which I think has good future estimates) is looking at 5.44 for the next year, while they did 4.82, so the growth would be about 12% for EPS growth. However, math looks pretty solid and if you thinker with the numbers a bit, you can also see around \~98 for that PEG.

creemeeseason

Trying to wrap my head around that ... Finviz has EPS growth consensus at 12%. Even assuming forward P/E, finviz has 25x 25/12=2.08. You're right, S.A. has it lower. Let's assume 13% growth going forward (though they underperformed on that). To get a PEG 1.5 (fair value-ish) you'd need a forward P/E of 19.5. Consensus 2026 earnings is $5.47. $5.47*19.5=$106.66 for "fair value"? Just some mental math while I cook, but how does that sound?

_hiddenscout

PEG is really just PE/EPS growth. Finviz has it still at like 2.04 [https://finviz.com/quote.ashx?t=BMI&p=d](https://finviz.com/quote.ashx?t=BMI&p=d) But I think Finviz is a bit delayed in earnings compared to stock analysis which I think has the most up to date numbers So after the drop today, forward PE is like 30 and PEG 1.86 [https://stockanalysis.com/stocks/bmi/statistics/](https://stockanalysis.com/stocks/bmi/statistics/) So kind of puts it like fairly valued for a GARPy look. I think from a DFC point of view, it's getting pretty close to intrinsic value, so there is kind of a bit of safety there. I think the sweet spot would be like another 10-15% drop in price to put in a place if you believe in story long term for some great alpha.

_hiddenscout

That’s a question for yourself.  For me, I’ve owned for years and the company continues to deliver. PE is high but PEG is low because of EPS growth. Last two quarters have been like over 100% in terms of EPS.  Also seeing like 40-50% of organic growth which is insane. 

creemeeseason

I always have a hard time figuring out a a PEG...10x EBITDA or 3x sales maybe a decent multiple?

_hiddenscout

I’m terrible with this type of math, but wonder what the multiple will be after this sell off.  When I was last looking, PEG was getting close to being under 2. 

TrickyBar9580

Just based off of PEG ratio, fair value is approximately $1500 a share

TrickyBar9580

MU still has a PEG ratio of 0.21, meaning roughly 5 times undervalued. Would need to go up 5 times more just to reach fair value

_hiddenscout

So screening just gives you idea to jump from. This is gearing towards GARP, growth at a responsible price. Looking at APP, valuation doesn't look too bad from a PEG level, but the PS, PB, and PC is pretty high. Second step is I run the name through quickfs like [https://quickfs.net/company/APP:US](https://quickfs.net/company/APP:US) I like to see the trend of ROIC, EPS growth, Margins and Revenue from here. I also like to look at FCF growth [https://stockanalysis.com/stocks/app/financials/cash-flow-statement/?p=quarterly](https://stockanalysis.com/stocks/app/financials/cash-flow-statement/?p=quarterly) Which there looks pretty solid. I actually use like an LLM to run a DFC as well to see what the instrict value of the company is. So APP is just an interesting name, since some things look expensive while other look good. To me, this is a hard company to get a gauge on, so personally, I would just pass on it. Doesn't mean it's a bad investment or anything, but if I can't get a good grasp, I don't have confidence to buy. I also don't know much about the ad markets as well.

69downunder

yes, focusing on bads of software doesn't matter, if a company decide to buy it, than that's it and it stick with it. it says reasonable Forward P/E (27.03) and PEG (1.35). also Atlassian's 300,000+ customers and 80% Fortune 500 penetration it says that reflect its freemium-to-enterprise model. Enterprise represents only \~10% of revenue (per FY25 data), meaning most customers are lower-ARPU SMBs/mid-market. This creates resilient, diversified revenue but slower ARPU growth compared to pure enterprise peers. I see that many hates servicenow $now also, from another SAAS niche. this one, has \~8,400 customers and 85% Fortune 500 (slightly above Atlassian), fewer total customers but far higher ACV (e.g., 528 >$1M deals). ServiceNow (85%) lead - and Salesforce (90%)! - in Fortune 500 depth, signaling premium trust and higher margins. Atlassian (80%) balances this with massive scale. All saas is down, but receiving buy ratings recently. e.g. UBS on $now, who reports on 8 jan. $hubs looks good too, it looks yoy eps+28.9%

Crazy_Donkies

Looking at PEG ratio?  MU.  AMD over another year.  APP is 1.13.  I actually think HOOD is mid 1s.  Industrial.  Power?  There's a bunch when you get out of $1 trillion plus tech.

GoZukkYourself

"The PEG ratio (P/E to 3-year forward EPS growth) of mega-cap tech has declined to just 1.4x, which matches the trough reached in 2022." - GS https://preview.redd.it/gigmq3aibpfg1.png?width=848&format=png&auto=webp&s=b12c19d32a579785d6a364535624c9599395ca4f

JohniBGood

You're technically right, but Forward P/E on hardware stocks is the classic bull trap. It looks cheap right now only because analysts are extrapolating 'boom cycle' growth forever. The moment Nvidia's growth slows from 'insane' to just 'great,' that PEG ratio explodes. I’d rather pay 30x for Google's recurring subscription revenue (Cloud/YouTube) than trust a hardware super-cycle at its absolute peak.

sleuth_creamer

Gemini recommended below based on the give criteria Criteria,GigaCloud (GCT),Gravity (GRVY) Market Cap,~$1.5B (Borderline),~$430M (Pass) ROE / ROIC,30% / 25%,30% / 30% Revenue Growth,40%+,10% (Variable) EPS Growth,50%+,15%+ PEG Ratio,~0.4,~0.7 Founder-Led,Yes,No Moat Type,Network Effect / Cost,Intangible Assets (IP)

creemeeseason

It still pretty expensive. Over 30x earnings (24x forward)and 8x sales. It's definitely a premium company and they've demonstrated their pricing power....it seems pricy. PEG is 1.8, so the market thinks it's reasonably priced for growth. I give it an...eh. I have better things to buy. I'd be vaguely interested about 25% lower, just based on some rough valuations.

3D-spaghetti-monster

If you're in it for the short term, I'd go with Micron. It's cheaper than ASML on a TTM PE basis, forward PE, and PEG ratio. It's growing revenue and profit way faster than ASML. Take a look at Micron's quarterly earnings for the last 4 quarters vs ASML's. Also, there's currently a DRAM shortage which is driving up prices and will go straight to Micron's bottom line. The memory shortage may not last forever but it's expected to last at least throughout 2026 and into 2027 which will keep Micron's margins elevated. The last time I was this confident in a stock was when I bought Nvidia in early 2024.

Artistic_Scheme8402

Main point: ratios are just shortcuts, they only work if you tie them back to actual business outcomes and capital needs. I like your framework, but I’d bolt on a few things: – For moats, I’d look at how often customers actually switch in practice (churn, NRR) not just “high switching costs” on paper. A lot of so‑called wide moats fall apart when a recession hits and buyers renegotiate. – PEG is decent, but I’d sanity‑check it with FCF yield + realistic long‑term growth. Analyst EPS growth assumptions 3–5 years out are often fantasy. – On unprofitable names, P/S under 10 can still be brutal if the sales are low‑margin or heavily subsidized by SBC. I track SBC as % of revenue to see how much “growth” is being paid for in shares. – For survival, I’d include off‑balance sheet stuff: lease obligations, rev‑share deals, and hidden capex. For tooling, Koyfin or TIKR are great for quick margin and cash runway checks, and platforms like Carta or Cake Equity help you see how dilution from future raises might actually hit you. Main point: cheap vs expensive is less about the multiple and more about whether the underlying economics and dilution math line up with the story.

waterpup99

That statement is fundamentally incorrect. Nvda is currently at somewhere around a 0.8x PEG which is at its 5 year low based on projected earnings that they will likely smash. It's priced nowhere near perfection. Goog is trading at 1.81x... Comparing trailing PE makes zero sense for these companies as they are in totally different growth trajectories, and current prices for NVDA are once again discounting expected growth FAR more heavily than Google. Based on current price Google 100% has less margin for error on growth based on guidance. It's annoying you're making me make this argument as I like all of the named equities.

Party-Cream8712

Main point: this kind of simple roadmap is a good starting filter, but you’ll avoid more landmines if you add a few “why could this be wrong?” checks on top. I’d layer in: (1) unit economics and incremental margins – is each new dollar of revenue getting more profitable, or are they buying growth with promo and headcount; (2) actual cash conversion – reconcile “adjusted” metrics vs operating cash flow so you see if stock comp and capex are hiding the real cost; (3) industry base rates – compare PEG and margins to their sector median, not just your rule-of-thumb bands. On high-growth names, I also look at cohort retention and payback period on customer acquisition; Snowflake, Datadog, etc. look different when you track that over time. Tools like Koyfin, TIKR, and even cap table platforms like Pulley or Cake Equity help tie valuation back to dilution and ownership math, which most people skip. Main point: use your 4 steps as a fast screen, then pressure-test them with cash, unit economics, and dilution before calling something cheap or expensive.

CompoteInternal1255

Sometime this year. /nods sagely No honestly, prolly in the near future. Nearer than anyone suspects. If their earnings stay stable -- and there's no reason to suspect they won't, because the contracts they have booked allow a certain amount of haggling on both sides, which means even more outrageous EPS -- then in order to achieve a PEG of 1 the price per share will have to hit $850. What's open in my mind is how long the crazy train can roll on. If it rolls into next year, I may very well sell half my holdings for tax reasons and sit on the rest. But when you start talking '27 numbers you're getting into expectations, not fundamentals, and if -- for example -- there's a delay getting one their new fabs up and running, the stock will take a swan dive.

Little_Magazine_1773

Well you don't need tons of info like thesis/ analyst ratings, forward price estimates and all that crap.. but you do need basic stuff Current price: (movement) +6% Current market cap: 100B EPS: 1.0 PE: 15 Fwd PE: 12 PEG Ratio 1.3 Yep that's all you need really.. which is what 6 lines?

EnginrA

Whats a PEG ratio?

Little_Magazine_1773

I do like that your basic design isn't crowded with tons of info but I think you should add current market cap, PE, foward P/E and PEG ratio at the very minimum to the stocks to have any kind of following. That would help attract a lot more peeps.

_hiddenscout

Yeah, just need to dig more into them, but at these levels, I'm seeing the PEG at like .9 [https://finviz.com/quote.ashx?t=SPOT&p=d](https://finviz.com/quote.ashx?t=SPOT&p=d) Gross margins are solid, kind of lower than I would expect for a like a software company [https://quickfs.net/company/SPOT:US](https://quickfs.net/company/SPOT:US) However, good ROIC, solid EPS growth. I need to look into why their EPS was so terrible two quarters ago

quuxquxbazbarfoo

Nah that is a recent phenomenon (\~last 2 earnings), which plays a part in why I think it will be going up after this next one. Their P/E has been consolidating over the last few releases, forward P/E is 24, super low for their growth, their PEG is under 1. This next release will put them into the teens which is just ridiculously low. People fear the so-called "AI bubble" right now and that is going away with companies like TSM releasing blowout earnings and guidance. NVDA will seal the deal next month with Vera Rubin guidance. This is the pattern NVDA's share price has been doing since 2023. Price sticks in the mud and stays flat for 5 months, then surges up 30-50% to get stuck again for 5 months, then surges up 30-50%. We are at the end of a 6 month mud-stuck price, time to fly. \+20% by May ($222/share). !remindme 4 months

MagnesiumKitten

Fox: Crucially, growth does not appear sufficient to justify this rating. Normalised earnings are expected to grow by roughly 16% between 2025 and 2026, which results in a price-to-earnings-to-growth (PEG) ratio of around 2.8. A ratio at this level typically indicates that growth expectations are already fully reflected in the share price. Dr. James Fox Based in London, James is ranked as the UK’s no.1 independent stock picker, according to Stockomendation. He holds a PhD in development economics and is a regular contributor to a range of business and economics publications. I don't agree with half of his remarks, but he's got a far better batting average than you do. Did you know that in the past week one of the brokerage houses are recommending a sell now on Rolls-Royce? and it's what 34 days before Q4?

Kantmzk

I started a position in Duolingo today and I will add more if it keeps going down. All the numbers are great and the market is getting scared about profitability and the idea growth is slowing. It has replaced Rosetta Stone in language learning and there is really no alternative, it is branching out to education in general, its forward p/e is 19 and its PEG is under 1. A growth stock priced like it's some sort of dinosaur. 

skilliard7

>P/E is useless in a vacuum. A P/E of 50 is cheap if growth is 50%. A P/E of 10 is expensive if growth is 0%. >Use the PEG Ratio (P/E divided by EPS Growth). PEG is a bad metric because it essentially extrapolates out growth regardless of how realistic it is. For example, 50% growth is likely sustainable for an early stage tech startup. But it's not sustainable in a firm like Nvidia who's growth is becoming constrained by availability of fab space & HBM, and who's customers are constrained by power generation. Earnings growth can also be heavily distorted by accounting charges. For example, if a stock has seen a significant price decline, accounting may be forced to make a goodwill impairment, which may cause earnings growth to appear to be stagnant, when in reality revenue is growing. The truth is you can't just look at 1 metric to make investing decisions. You have to look at what you're paying relative to discounted value of future cash flows.

_hiddenscout

Usually dump after earnings happen when the stock is expensive, runs into earnings, or the market was expecting more. Stock has TTM PE of 36 and Forward PE 41 with a PEG of 2. It's just not a cheap name. Long term, aerospace looks like a strong and nothing was "bad" from the report per say. I think it's a great name to buy if it keeps selling off and valuation start looking better.

_hiddenscout

Haven't dug too much into SAP, but has been on the screener for a minute. PEG is now under 1 and still growing nicely QoQ with pretty solid gross margins and good ROIC. I need to dig more into them. I think you are pretty close to intrinsic value or not a bit under. 100% really interesting name right now. It's part of why I just bought DOCS. One of the big reasons was how much they are growing FCF right now. FCF last two quarters grew like 48% and then 43% while the stock keeps dropping in price. [https://stockanalysis.com/stocks/docs/financials/cash-flow-statement/](https://stockanalysis.com/stocks/docs/financials/cash-flow-statement/)

_hiddenscout

One thing that has really helped me is coming up with a strategy of how to invest. I do some options trading from time to time, but I'm mainly what you would call a GARPy investor (growth are a responsible price). The idea if you want to pay a fair value or a good for a quality company that is growing. You need to start to learn some fundamental analysis, but it's nothing crazy. My approach is basically to use a screener to help me reserach. I always share it, so this is like two of my screeners I use. [https://finviz.com/screener.ashx?v=111&f=fa\_epsqoq\_o5%2Cfa\_peg\_u2%2Cfa\_quickratio\_o1%2Cfa\_roi\_o10%2Cfa\_salesqoq\_o10&ft=2&o=industry](https://finviz.com/screener.ashx?v=111&f=fa_epsqoq_o5%2Cfa_peg_u2%2Cfa_quickratio_o1%2Cfa_roi_o10%2Cfa_salesqoq_o10&ft=2&o=industry) [https://finviz.com/screener.ashx?v=111&f=fa\_epsqoq\_o10%2Cfa\_peg\_u2%2Cfa\_quickratio\_o1%2Cfa\_roi\_o5%2Cfa\_salesqoq\_o15&ft=2&o=industry](https://finviz.com/screener.ashx?v=111&f=fa_epsqoq_o10%2Cfa_peg_u2%2Cfa_quickratio_o1%2Cfa_roi_o5%2Cfa_salesqoq_o15&ft=2&o=industry) Basically I look for companies with a PEG under 2 and then different characteristics. The goal isn't to buy all companies from these lists, but it gives you less companies to research. Both screeners have around like 150 companies. From there you can start digging into names. I post here a lot, more than i like to admit lol, but i'm always posting interesting names I find from screening. Feel free to reach out if you have any other questions, but I've helped a few people take on the approach of screening and I think it it's a game changer for investing.

MagnesiumKitten

You got your PEG Ratios and valuation issues right here, Dr Squeaker The Motley Fool Prediction: in 2026 the red-hot Rolls-Royce share price could turn £20,000 into… Jan 8th The Rolls-Royce (LSE:RR) share price has more than doubled over the past year. That would have turned £20,000 into almost £44,000. That’s the investing dream. However, this is very unlikely to happen again in 2026. It’s simply a valuation issue. It’s a great company with a lot to be positive about, but a lot of that optimism is already priced in. Let’s explore why. **Valuation is key** Rolls-Royce’s operational recovery is impressive, but the valuation leaves limited scope for further upside. Based on the figures provided, the shares trade on a forward price-to-earnings multiple of 44.1 times for 2025 and 38.2 times for 2026, using normalised earnings per share of 28.2p and 32.6p, respectively. Crucially, growth does not appear sufficient to justify this rating. Normalised earnings are expected to grow by roughly 16% between 2025 and 2026, which results in a price-to-earnings-to-growth (PEG) ratio of around 2.8. A ratio at this level typically indicates that growth expectations are already fully reflected in the share price. Revenue growth remains modest, with a compound annual growth rate of just 2.7% over this year and the next, even as operating margins expand above 20%. **Analysts concur** Honestly, institutional analysts aren’t always the best stock pickers. One of our peer sites actually indicates that Wall Street analysts have underperformed the S&P 500 by around 30% over the past three years. However, the consensus of their opinions often tells a useful story. Here, the 16 analysts covering the stock have a share price target that’s 4% below the current share price. In other words, they’re suggesting the stock is overvalued. **It’s not all bad** While I actually don’t believe Rolls-Royce is overvalued, I simply don’t see much room for the share price to appreciate unless we get some more good news about the business. That’s certainly possible, but it’s nothing to bank on. In fact, it makes the investment speculative, unless you know something about the business that isn’t publicly available.

CraneEternal

https://www.financecharts.com/stocks/TSLA/all-metrics Mr Potato Head’s company has a negative -4.7 PEG ratio suggesting his boneheaded ideas means his company is losing money or is expected to have declining earnings (negative growth), signaling potential financial struggles, a struggling business model, or significant market challenges. The guy’s an idiot.

TheDonFulio

That TTM PE includes a one time tax bill from Brazil. So that’s not reliable either. From a DCF perspective it’s fairly valued and from a PEG standpoint.

Billybob8777

The growth is based on the PEG ratio being low which is based on predicted revenue for like 5 years. Nobody believes the AI bubble will last until 2031. You're just gambling at this point with Nvidia.

MagnesiumKitten

rat skin: then you're invested in overvalued industries, extremely overvalued. Again many of the companies in that sector **are** undervalued and profitable PEG Ratio 10.48 Wholesale Distribution 11:02 Electrical Utilities 11.39 Biotechnology 13.18 Medical Services 13.61 Household Care 14.44 Building Products 15.81 Packaged Software 59.85 Metal Fabrication

Ok-Educator5253

What do you mean by “insane multiples” fkr NVIDIA? It’s forward PE is 27 and it’s PEG is .73 It’s pretty fairly valued. Maybe slightly undervalued if anything.

SamQuentin

A 22 multiple with a PEG over 2 is wonderful valuation?

MagnesiumKitten

says the man prone to histrionics who can't even use Gross Margin percentages properly. or even address the wildly different values for PEG Ratios, using different criteria. You're in the minority being blind to widely overvalued stocks. If you can't even use the proper metrics, or understand wildly different ways of calculating just the PEG Ratio, how can you even discuss measurements with dozens of variables? like valuation you're just a shrill rat squeaking

_hiddenscout

I basically own all these and had them for a while. I post more in the daily threads, so most these names I’ve brought up there when valuations where better.  Problem with a lot of the names, these had some pretty wild runs and valuations are ok the expensive. Some of the names will be pure plays in space while others have space as part of their business.  I wouldn’t say one is the best vs which is the best deal. I’m a GARPy investor, so I try to buy when the PEG is under 2.  I think MOG.A and BELFA/BELFB might be the closet to that value zone now. 

The_Milkman

Options trading is somewhat simple when you buy LEAPs on high conviction companies with PEG significantly under 1

KesselMania94

First off the 0.42 was from a single quarter. Assuming they had flat earnings every quarter it would be 1.68 EPS. 2nd PE is Share price/EPS. Even using just quarterly you'd have PE of 130. Lastly PE is not everything. What is often more important is how this is changing over time (usually measure by PEG). For example not uncommon to see commodity stocks with a PE of like 3 but because commodity prices declined everyone know they won't make close to that in future years so it seems cheap but its not. Similarly with growth stocks if a company has a PE of 500 but is doubling its earnings annually who cares about that high of a PE. There's lots more to look at but just some small insights.

_hiddenscout

I saw you had two posts, not sure what happened to the other, but I'm a GARPy investor, so I always try to buy things with a PEG under 2. Like with the growth from today, puts just over 2. [https://finviz.com/quote.ashx?t=PSTG&p=d](https://finviz.com/quote.ashx?t=PSTG&p=d) So still not bad by any means.

thinkneo

PEG under 1 with that revenue growth is interesting. Nice breakdown.

c-u-in-da-ballpit

If you can stomach volatility. Forward PE is ~12 and PEG is .56. Q2 revenue up 42% and Q3 up 70%. Turnaround is underway but not priced in

Short-Beautiful-9403

PEG is 1.5 . Is the EPS growth going to consistently grow >20% when revenue growth is <10% ?

MagnesiumKitten

why don't you shut up and wait a year and see how Berkshire-Hathaway performs go learn how to properly apply a PEG Ratio in the meantime

MagnesiumKitten

I guess now it's clear you don't have a very good grasp of Gross Margins in regardless to profitability and now you've done the same in spades with the PEG Ratio for valuation I just find it strange that you crap your pants if I state something that half the analysts say out there 1 Rolls-Royce is significantly overvalued to a massive degree 2 Berkshire-Hathaway is significantly overvalued to a small degree 3 Rolls will drop almost 10% by next xmas if nothing changes 4 Berkshire will drop almost 20% by next xmas if nothing changes if you get bent out of shape, it's your problem and no amount of gaslighting is gonna fix that

ptexpat

If you are going to look at PE then you have to compare it with EPS growth, not Revenue growth. They are benefitting from operating leverage (you'd expect them at their scale) and the current consensus estimate is that EPS is going to grow around 28% next year. Making their PEG look like an absolute steal compared to any comparable company of their size.

MagnesiumKitten

riiiight Maybe you need to prove that fiction then again, you've been bitching at me where I see half the stocks as overvalued, and you're investing in massively overvalued high-risk stocks and I keep telling you, that you're in denial My point is I don't see any valuation problems in those eight sectors and PEG isn't very important for most of them

MagnesiumKitten

gaslighting again? funny how you're avoiding the talk on the PEG ratio, and going back to shitposting

MagnesiumKitten

rat skin: PEG ratio is a basic, easy to understand tool you can use to value companies and see if they're overvalued or undervalued, with a value of 1 being fairly valued. Yet the average PEG Ratio in key industries are way over 1. 10.48 Wholesale Distribution 11:02 Electrical Utilities 11.39 Biotechnology 13.18 Medical Services 13.61 Household Care 14.44 Building Products 15.81 Packaged Software 59.85 Metal Fabrication I've got stock in half of those and don't tell me the PEG determines undervaluation there

MagnesiumKitten

So why are there four wildly different PEG ratios for Rolls-Royce? ....... People calculate PEG differently Yahoo Finance: \~2.83 - 2.95 (5-yr expected). MarketBeat: 2.03 (based on 16.67% growth). Zacks: 2.18 (based on forward P/E). Morningstar: 0.10 (for 2025, suggesting significant undervaluation). I guess you can explain why the numbers are so wacky, since they're forecasting the growth differently **maybe you don't want to answer that question**

Weak-Pomegranate-435

Valuation matters. Its one of the most richly valued stocks. So think there are alot of people mega bull on this. Bcz even after accounting for growth rate its at 3 PEG.

TheSixthNonsense

Pretty robust high double digit growth with cloud service growing 40% yoy. PEG ratio at multi-year low.

ratskin69

You mean their high PE and PEG ratio is actually a deal?

_hiddenscout

That's not me lol. I do have a stocktwits, but I don't really post anything on it. I use it for news and my watchlist. Yeah, TTMI I actually found withing LLM's. Since I was looking for more niche defense names, since I did well with a lot of smaller ones, especially ones that work with modernization. Since, it doesn't have a lot of analyst coverage, there was no PEG, so it didn't screen well. That's the downside of screening only, since you can miss stuff like that. However, my friend way to use LLM's when searching for new stocks is to use ones I like and tell them I'm a GARPy investor and like niche. I own so many of these smaller niche industrial names. Mainly just share my ideas here, but hardly anyone ever actually engages with me lol.

explorer_soul99

**2. AMD - HOLD (Neutral)** | Metric | Value | Analysis | |:--|:--|:--| | Market Cap | $330B | | | YTD Return | +68.4% | Strong, but trailing NVDA | | P/E | 99.9x | **Expensive** | | Forward PEG | 0.75x (est) | 25% discount to sector, but still pricey | | ROE | 5.6% | **Weak** for a growth stock | | Analyst Rating | Buy (47 of 69) | Consensus positive | **Your Thesis:** Lisa Su is a legend, and MI300X is NVDA's only credible competitor. But... AMD trades at 100x P/E with 5.6% ROE. That's a lot of hope priced in. **Risk:** If MI300X doesn't steal meaningful share from NVDA, stock tanks. **Verdict:** **HOLD.** I love Lisa Su too, but valuation is rich. Wait for -15% pullback. --- **3. ALL (Allstate) - VALUE PLAY** | Metric | Value | Analysis | |:--|:--|:--| | Market Cap | $56B | | | YTD Return | +10.5% | Steady | | P/E | 6.7x | **Cheap** | | ROE | 35.3% | Excellent | | Analyst Rating | Buy (22 of 42) | Positive | **Your Thesis Confirmed:** P&C insurance is defensive + rate hikes = higher investment income. 200% YoY growth sounds like an acquisition or one-time event (not organic). Verify in 10-K. **Risk:** Climate risk (hurricanes, wildfires) could spike claims. **Verdict:** **BUY.** Cheap defensive play with 35% ROE. Good for portfolio balance. --- **4. INCY (Incyte) - BUY** | Metric | Value | Analysis | |:--|:--|:--| | Market Cap | $21B | | | YTD Return | +53.7% | Strong | | P/E | 17.6x | **Cheap for biotech** | | ROE | 29.8% | Healthy | | Analyst Rating | Buy (24 of 43) | Positive | **Your Thesis Confirmed:** Jakafi is mature, but pipeline (blood cancers, dermatology) is diversifying. Low debt, insider buybacks, 30% ROE = quality compounder. **Risk:** Patent cliffs. Jakafi loses exclusivity 2027 (US), 2029 (EU). Pipeline must deliver. **Verdict:** **BUY more.** At P/E 17.6x with 30% ROE, this is a steal if pipeline works. --- **5. B (Barrick Gold) - CONTRARIAN BUY** | Metric | Value | Analysis | |:--|:--|:--| | Market Cap | $82B | | | YTD Return | **+199%** | Huge move | | P/E | 22.7x | Reasonable for gold miner | | ROE | 14.5% | Decent | | Dividend Yield | 1.1% | Bonus | **Your Thesis:** Gold up 35% in 2024 (to $2,650/oz), but B is up 200%. Some of this is catch-up (miners lag gold), but momentum is strong. Copper exposure (30% of revenue) adds diversification. **Risk:** Gold peaked? If we get a Trump "strong dollar" policy, gold could correct 15-20%. **Verdict:** **HOLD (trim 25%).** Take profits, keep core position. Gold is overbought short-term. --- **Portfolio Allocation (if $10k):** - **MU:** 30% ($3k) - High conviction - **INCY:** 25% ($2.5k) - Value + growth - **ALL:** 20% ($2k) - Defensive - **B:** 15% ($1.5k) - Commodity hedge (trimmed) - **AMD:** 10% ($1k) - Speculative (wait for dip) **Bull:** Diversified across tech, healthcare, financials, commodities **Bear:** Heavy on semiconductors (MU + AMD = 40%) - if AI crashes, portfolio hurts Solid list. I'd rank: **MU > INCY > ALL > B > AMD** (on current valuation).

explorer_soul99

Solid watchlist—mix of growth (MU, AMD), value (ALL, INCY), and commodities (B). Let's rate each with data: **1. MU (Micron Technology) - STRONG BUY** | Metric | Value | Analysis | |:--|:--|:--| | Market Cap | $386B | | | YTD Return | **+295%** | Massive momentum | | P/E (TTM) | 32.6x | vs sector median 1.66x forward PEG | | Forward PEG | 0.20x | **Screaming cheap** for growth | | ROE | 22.4% | Healthy | | Analyst Rating | Buy (54 of 67) | Strong consensus | **Your Thesis Confirmed:** HBM3E dominance (80% market share vs Samsung/Hynix) + AI demand = multi-year tailwind. Yes, it's near 52-week highs, but forward PEG of 0.20x is insane for a semiconductor in an AI super-cycle. **Risk:** Cyclical business. If AI demand slows (2026?), memory prices crash. **Verdict:** **BUY on any -10% dip.** This is a 3-5 year hold.

MagnesiumKitten

I have you an example of four wildly different measures of the PEG Metric and which one is the correct one for Rolls-Royce? or any stock, actually maybe you don't want to answer that question

MajesticBread9147

I have three long term holds. **ASE Technology (ASX)** A Taiwanese company that is the market leader in outsourced semiconductor packaging and testing. Semiconductor process nodes can't shrink too much more before we get into issues, which is why many companies are not focusing as much on die-shrinks to increase performance but instead more advanced packaging. You see this with the increased use in 2.5 and 3D packaging, chiplets, SiP and the like. This trend is across the electronics industry, from auto manufacturers, the main CPU and GPU designers we all know, as well as SOCs used in cell phones, and combined CPU/GPU SOCs designed by big cloud providers used for AI training. The company is well diversified within the industry, and is the main player in their space, so isn't reliant on the current AI hype train to succeed. They have lower margins than TSMC however they have a significantly lower PE and PEG ratios and pay a 3% dividend which I reinvest. They are investing heavily into new equipment and factories to support the latest and highest margin technologies that they work with, but are still diversified across pretty much all semiconductor packaging beyond just the high end. The company doesn't get a lot of hype, and isn't captured by a lot of semiconductor ETFs, so while it absolutely is positive impact on the AI hype cycle, they are much less likely to be severely hurt by a bubble popping the hype cycle compared to NVIDIA or TSM, especially with their diversification. **Secondly, since we need to power the datacenters**: **First Solar(FSLR)** Basically zero debt, 0.57 PEG, and 28% profit margin with a huge backlog and new factories coming online this year. They make most of their panels in America and despite that and their large margins they were the first solar company to achieve sub $1/watt pricing over a decade ago. Their panels don't use silicon and instead use a different semiconductor (CdTe) that allows an efficient thin film deposited on glass ( vs sliced silicon crystals) meaning they use less material, and this semiconductor is both significantly better at maintaining efficiency in high heat environments and cheaper to produce. They focus exclusively on grid scale solar projects and contracts, so their revenues are more predictable and less sensitive to interest rates than rooftop solar. Current government policy can't change the fact that utility scale solar is by far the cheapest and fastest way to add electricity to the grid in a time when fossil fuels are set to become more expensive due to both increased exports and domestic demand, and nuclear projects, even SMRs take significantly longer and cost significantly more. **Lastly, I think Celestica(CLS) is still fairly valued as a growth play.** They are an advanced electronics manufacturer and large manufacturer of high speed network switches that are used in hyperscaler datacenters. Every server rack, and at multiple connections upstream has a switch, and networking is very important for ML workloads because large amounts of data needs to be sent between different servers quite quickly. They are the market leader in 800G switches which is the cutting edge right now. And while this is a good portion of their business, they also do healthcare technology,rack integration, general electronics design and offer services to better automate factories, which is important if we are going to bring manufacturing back. There are dozens of cloud companies, most of whom are unlikely to last til 2030, but Celestica will last, and every cloud company uses something made by them. They even make components and contracted out design and manufacturing for companies like Juniper and Dell. They beat last quarter earnings expectations by 50%, have a 30% ROE, and are expected to grow their EPS by 28% each year over the next five years. It's my largest holding by far. All of these are positioned to grow with whatever Cloud/Datacenter providers win out, whether AMD, Nvidia, or custom SOCs dominate compute, and are diversified enough to not go bankrupt if this turns out to be all hype.

Disastrous_Rent_6500

AMD, the PEG ratio is where I want, it so I’m gonna keep buying my winners. Also, Agentic AI and Sovereign AI are around the corner so companies are gonna need AMDs inference chips.

Kollv

Hmm at a glance -high debt -Growth slowing down -Elevated forward PE and PEG -Competitors entering the space I'm holding since 15 and will continue holding since stocks tend to surprise me on the upside. But... selling might be the correct play ngl.

TWSTrader

**Most books teach you definitions. These three teach you how to think.** I’ve read hundreds of finance books over the last decade, and 90% of them are fluff. If you want to move from "Retail Investor" to "Professional Mindset," this is the triad I recommend: **1. The Mindset:** ***The Most Important Thing*** **by Howard Marks** * **Why:** This is the Bible for risk management. Marks introduces the concept of **"Second-Level Thinking."** * *First Level:* "Good company, buy stock." * *Second Level:* "Good company, but everyone knows it's good, so it's overpriced. Sell." * It teaches you that investing isn't about buying good assets; it's about buying assets *well*. **2. The Process:** ***One Up On Wall Street*** **by Peter Lynch** * **Why:** Since you asked "what to look for," Lynch is the master of simplifying fundamental analysis. He teaches you how to use your edge as a consumer to beat Wall Street. It covers the "PEG Ratio" and how to categorize stocks (Fast Growers vs. Stalwarts) better than any textbook. **3. The BS Detector:** ***Financial Shenanigans*** **by Howard Schilit** * **Why:** This is the book professional short-sellers read. It teaches you how companies manipulate earnings to look profitable when they aren't. It will teach you exactly what *not* to invest in. **To answer your question on "What I look for":** I look for one metric above all else: **ROIC (Return on Invested Capital).** * If a company takes $1.00 of debt/equity and turns it into $1.20 of profit year after year, that is a compounder. * If they turn $1.00 into $1.02, they are destroying value, no matter how "cheap" the stock looks. Start with Marks. It will save you the most money in the long run.

MagnesiumKitten

Yet you're the one with the robotic powers of reasoning. So why do you have four different measures of PEG here?

MagnesiumKitten

We've had this discussion before where it's not that meaningful for certain stocks. And that not everyone calculates PEG in the same way. And if Rolls Royce has a lousy 5-Year EBITDA Growth Rate, you're going to meaningless numbers

Turbulent-Belt6076

I know Amazon will continue to be a big dog in the next decade. Think how many orders, employees, packages you see everyday. Yes the PEG is apprx 1.51, but with the new AWS partnership with OpenAI, they are bound to see a large upside. To answer your question, yes most likely amazon will continue to be a beast in 20 yrs, I do own Amazon myself.

dont_downvote_SPECIL

I don't really see any downside from AI stocks because: Valuations for AI leaders remain compelling relative to growth (~1x PEG vs. 1.5x–2.0x for SPX/large-cap peers) “Bubble” risks are already well understood and priced (12,000 AI-bubble media mentions in Nov’25) Physical constraints (power, data-center capacity, chips) should limit excess buildout

Informal-Winner-94

the problem with subscription services is that their recommendations can become a crowded trade. I like looking at PEG metric. It's kind of like P/E but a lot of cheap P/E companies are cheap for a reason i. e. they aren't growing so PEG is a nice combo of valuation and growth potential. Then pick at least 5-10 and see which one(s) outperform

Petit_Nicolas1964

My advice is to keep cool and not to jump in and out of stocks too often. I bought Meta in 2021, it lost 70% in 2022 and was at 180% of my buying price a couple of years later. Micron is different as it is cyclical, but CAPEX spending for data centers is not slowing down, demand for memory is very high and pricing power enormous. Micron‘s fwd PEG ratio is at 0.2, which is really cheap, due to the crazy growth probably cheaper than the stock was 6 months ago. It‘s a 3 x for me and I will sell when first signs of growth slowing down and margins contracting occur. I don‘t look at how much I made with a stock, I make my decision based on valuation.

alexunderwater1

Hot take, natural gas will boom in the U.S. — it’s almost a waste product of oil production since it’s difficult to capture and transport, and its quite easy to convert coal plants to natural gas. $ET is one of my favorite stocks for it. Great PEG ratio, amazing dividend.