PEG

_hiddenscout

I've never looked too deep into BSX, always been too expensive, but need to dig a bit more into them at these levels. PODD has shown up on my screener, but I have a terrible time with anything medical related. Personally, I just worry about anything insulin related, due to the GLP1s. I think type 1 is like 5% of all people with diabetes. So GLP1s in theory should impact long term for type 2. PEN also shows up on my screener, but never dug too deep into them. Expensive PE, but PEG isn't too bad. There's another name I never pulled the trigger on, but is really interesting, but market cap is too small to list, even though it has solid fundamentals and trades at like 30 a share.

salty0waldo

Have been looking into a couple medical device companies and was wondering if anyone had insight: $BSX * MedSurg and Cardiovascular devices * WATCHMAN FLX is big growth driver here for cardiovascular * FY2025 PE of 31 with FY2026 PE of 27, PEG of 1.66 * Expected to grow top and bottom lines by 11% and 14% respectively $PODD * Insulin pump / pod as Omnipod * FY2025 PE of 59 and FY2026 PE of 46 PEG of 1.92 * Topline grew at 33% for FY2025 and expected at 21% for FY2026 Both of these are very interesting, but I still think the current valuations are expensive.

Prudent-Corgi3793

Honestly, no one knows for sure. Bull case: forward PE ratio is 7, PEG ratio is 0.14, forward guidance was ridiculously good. If they hit next quarter's guidance and never grow again, it's still a screaming buy. Bear case: memory cycles are highly commoditized. Look at a 15-year chart--even after the GFC, there have been three huge bust cycles where you would have eaten shit. I'm an AI bull and think this supercycle will last longer than prior ones, but it could crash hard, especially since Micron has competition from SK Hynix, Samsung, and the new Chinese company.

Prudent-Corgi3793

They’re worried about the ability of the hyperscalers to continue spending. I’m much more worried about consumers not spending lol. MU is trading at a forward PE of 7 and a PEG of 0.14, and it would be much lower if they even come close to their next quarter guidance. There’s already the downside of the future boom-bust cycles priced in.

Study_Queasy

Yeah ... based on that, I held on to stupid PYPL for God knows how long. Damn thing is a dead stock even though they are still excited about the company. There is a lot to valuation. I know the basic plot. PE, PEG, forward PE, the moat etc. But on this sub, someone explained why PLTR is trading so rich. I am not sure I would have figured it out myself. I will give it a thought and will try to put more effort into it. That's the only way out.

_hiddenscout

Bought some AROC and EFXT this morning. Looking at EQT as well. Like it's so interesting that EQT is seeing like insane QoQ growth. Trades at forward PE of 14 and PEG of 0.6. Also pays a little dividend too, .17c a share.

thorn960

Even though sentiment lately hasn't been good the fundamentals haven't changed and they are still very good. I don't know of any other tech stock with a PEG ratio that is 1 or less. It's a good price to get into right now. Just be prepared to hold for a significant time because there could be some ups and downs.

_hiddenscout

Great company. I like doing smaller more niche ones for infrastructure, but CAT is solid.  However, I think it’s kind of pricey at these levels.  Like PEG is almost at 4  https://finviz.com/quote.ashx?t=CAT&p=d I would personally wait for a better entry if you wanted to go long. However, it’s your money, so do what you think is best. 

Substantial_Ring9690

Did some calculations last night and feel comfortable buying MSFT, NVDA and GOOGL. Very comfy PEG multiples. Speaking of peg, which one of you ladyboys wants the bottom bunk.

AlGAdams

Check their PEG too lol

zendaddy76

PEG ratio is also screaming “strong buy”

g3tr1ghttt

My bro, being cautious with guidance is good, and they will still have higher margin than MU, and if sales volume will be at least as per guidance, AVGO’s PEG looks low, meaning they are undervalued. MU is also undervalued based on PEG. My guess is that these “margins concerns” is an excuse for manipulation to create uncertainty, elevate volatility, and sell options at a very high premium. AVGO financials look much better than they used to a quarter ago, but somehow the stock is trading at the same level.

cbusoh66

$MU almost $5 EPS, that's $20 a share this FY, at $240, it's probably the cheapest semiconductor stock when you look at PE and PEG and the problem with memory and HBMs is not likely to go away anytime soon and they and SK/Samsung have everyone by the balls when it comes to pricing power.

Petit_Nicolas1964

Nvidia is 20% under ATH and has a fwd PEG ratio under 1, which is not expensive if you compare it with other MAG 7 companies.

AIStockExplorer

Totally agree, PEG only works if you model the growth yourself. ROIC shows quality, PEG shows price. Using both gives a cleaner signal.

GreenMellowphant

ROIC and good the ole PEG ratio (but you have to model it for yourself - don’t plug and play with WS numbers).

CaterpillarMain2138

Forward EPS growth is at the highest rate in 15 years outside of COVID. And the PEG ratio is -0.70 standard deviations away from the 10yr average. How about those reality based metrics?

Prudent-Corgi3793

The only thing that matters is guidance, because they will beat. If they provide convincing guidance that demand looks strong for the foreseeable future (probably at least several years), Micron gets priced as an AI play with a dirt cheap forward PE of 12 and PEG of 0.35. Can continue to moon. If they don’t, or if the market doesn’t believe them (and they’ve been much more skeptical on tech recently), then it’s a highly cyclical, commoditized business with a higher trailing PE of 30. Considerable room to fall.

New-Entertainer6917

HOOD looks very expensive. It has a 2.23 PEG and 30x EV/Revenue. That's a little too rich for my blood.

alexunderwater1

PEG ratio

_hiddenscout

I bought some last week just a swing/value trade. Not a fan of the industry, but valuation is pretty cheap on, kind of like I did with NRDS. Happy to sell if I can get any decent profit on it. Seems like their story is shifting user base to more of their subscription users. Overall, Company is growing revenue like 65% QoQ and good gross and operating margins. Plus really high ROIC. PEG is 0.39.

Glittering_Water3645

Are you convinced it's a bubble? The valuations are actually lower now in comparison to 1 January this year even tho indicies are up since then. Earnings growth is solid. The PEG-ratio (price to earnings relative growth) indicates a slightly undervalued market. Forward PE is slightly elevated but nothing crazy. No, it's not a bad time to buy index funds.

Orndwarf

I’ve begun to build a position at these levels. Currently at about 20% of a “full” position. FWD PEG looks attractive

Salt_Data3707

Now check each of those companies PEG ratios. P/E is backward looking. Its all about future earnings and growth

Charming-Lion-3547

That "Value Score" you cooked up is actually super interesting. It mashes up valuation, profitability, and growth into one metric, which reminds me a bit of a tweaked PEG ratio. It shows you have really put some deep thought into how value investing works. At its core, value investing is just about buying good companies at cheap prices. But how you actually define "cheap" and "good" depends on which school of thought you follow. First, you have Ben Graham’s "Cigar Butt" approach. This is the classic, old-school style. Graham hunted for companies trading way below their liquidation value—like finding a discarded cigar butt on the street that still has one free puff left in it. He focused heavily on low Price-to-Book and Price-to-Earnings ratios. He didn't care much about the company's quality; he just needed it to be dirt cheap. Then you have Buffett’s "Moat" strategy. Buffett evolved the game. He shifted focus to "good companies"—ones with strong competitive advantages and steady cash flow. He is willing to pay a "fair" price for quality. Beyond just P/E, he looks at Return on Equity, Free Cash Flow, and brand power. Finally, there is modern quantitative value investing. A lot of funds and investors today use a basket of metrics to spot value. Common factors include low P/E, low P/B, low Price-to-Sales, high Dividend Yields, and high Free Cash Flow Yields. So, how does your method stack up? Honestly, it is solid because you aren't looking at valuation in a vacuum. A company might have a super low EV/Operating Profit just because it is a dying business. By combining that with operating margins and revenue growth, you are filtering out those "value traps." You are hunting for quality companies that are both cheap and growing, which aligns a lot more with Buffett’s philosophy. Bottom line, there is no single "correct" definition here. Value investing is a framework, not a strict formula. Your approach is a great attempt, and as long as it helps you consistently find money-making opportunities, then it is a good method.

Prudent-Corgi3793

Buy at 1, sell at 2, using PEG ratio as my guide.

Ill-Ad3188

Should be looking at a PEG chart as well where things are much less alarming.

dont_downvote_SPECIL

NVDA is dirt cheap, -40% below the sector on forward non-GAAP PEG. The current media landscape and market is absurd, if you look at the valuation data and growth rates for most (not all) AI names and compare it to the broader economy's equity, there's more logic in the statement that the U.S. economy is in a bubble while the U.S. AI market is not. This is completely inverted to what the media is saying ("AI bubble"), but it is arguably the truth ("U.S. macro economy bubble"), and given AI/robotics is the only logical savior to stagnating GDP growth, owning AI stocks is probably the winning long-term trade and volatility would be due to the broader market suffering while AI props it up (i.e. buy the dips in AI and you'll beat the market long-term). That's unless AI doesn't deliver enough GDP growth and then the whole U.S. economy has a 1929 moment. So we are basically in AI bull market long-term or macro demolition day. Such a confusing environment to make sense of but there we have it.

CaterpillarMain2138

This is incorrect. According to my bloomberg terminal, Forward looking adjusted eps growth expected to be 36% over the next twelve months. With a forward PE of 35, the PEG looks pretty solid to me.

Working-Active

It's a 5 year PEG ratio of 0.54

Severe-Appointment40

Damn that's a solid entry at $155, respect for holding through all the noise The AI bubble talk is definitely getting louder but AVGO's fundamentals are still solid. VMware integration is going better than expected and the dividend yield at these levels is pretty attractive VRT's been on my watchlist too - that PEG ratio is tempting but the recent downgrade spooked some folks. Might wait for sub-$150 before I dive in

Acrobatic_Ad_8811

MU’s PEG is 0.18 and it’s down over 6% today…

Jinhe0529

NVIDIA's PEG is now 0.70, forward P/E at 23 It’s cheaper than McDonald, make more SENSE……… https://preview.redd.it/yscoefywut6g1.jpeg?width=880&format=pjpg&auto=webp&s=9572e7b16c8b31f2ced9c43e380666d657558f12

rwc5078

Sounds cheap regarding PEG and for a long term holder, my comments are irrelevant! Lolol Keep an eye on future earnings growth though

EvolvingDior

AVGO has a forward PE of 44 and a PEG of 0.69 (nice!). But the expectations are huge. Any hint of struggle in its earnings will send it tumbling.

Crazy_Donkies

Sure, but PEG ratios indicate there are still plenty of options.

cogit2

Conflicting stats though. PEG ratio over 5, the rest of the common valuation stats suggest higher valuation. Things will only really kick off once Uber starts buying self-driving cabs.

Rantvelnikov

I would say. Make a filter for companies with an operating margin of around 20% and a P/E below 30. Check for a PEG ratio below 1 and current ratio of above 1. Than research it, research it more and if you're confident it is a quality stock, decide when to buy.

_hiddenscout

SYF is an interesting company. Credit isn't really my wheelhouse, but the fundamentals are pretty cheap and should continue to be a great compounder. BKTI is one of those stocks that are pretty interesting. Niche company and never would have thought that selling like walkie talkies to federal agencies would be such a great business. FTK is really cool with that they are doing. Their JP3 monitor I think is only one approved by the EPA standards and should be a way to help save costs for LNG pipelines. As long as the company can continue to execute, the thing looks really cheap. BWAY is a bit more speculative. It's not the cheapest name, but they have good gross margins and operating margins are improving. EPS Growth is really strong, so the PEG looks better as long the company continues the growth. I find what they are doing with magnetic helmets is just cool. Plus it's FDA approved, so it is legit. It high risk, but could be high reward. Plus basically being debt free makes it easier to hold, less risk of bankruptcy.

movienight1988

Forward PE of 25,PEG under 1, cheaper than it was before earnings after a huge beat. I mean come on, writing was on the wall this would eventually go up. If you didn’t want to buy NVDA fine, at least buy the guys that supply to Nvidia and the rest of the world. Oh wait I forgot, most people nowadays don’t invest, they gamble and shit their pants if anything they get goes down 2% the next day.

_hiddenscout

ELMD Small device maker. Really small market cap, but has a clean balance sheet. 5 Quarters of double digit revenue growth, with pretty high gross margins (around 78%) Solid EPS growth and ROIC. Good insider ownership at like 21% and extremely small float of 6.55M shares available. MCK Started looking into this one a bit. Don't really know much at this point, but actually pretty low float for such a big company. Really is more of a value play at this point, since the forward PE and PEG is pretty decent for the company. However, pretty big red flag with how much insiders have been selling recently. TMDX Probably enough you can find online about them, just find them pretty interesting at these levels. Valuation doesn't look too terrible.

DarioMMN

This is a great breakdown of GARP in practice. For traders it’s the same idea, just compressed in time we wait for our “fair value” in terms of imbalance and risk-reward instead of PEG and QoQ growth. Love that your process is rule-driven too, that’s really all that matters on any timeframe.

_hiddenscout

It’s a great question. To me, I don’t worry another performance too much, since this is a small cap and pretty unknown. It’s liquid, but has a pretty low volume.  Totally possible in the short term it’s going to be rocky, but I’m looking at the name for a long term hold. I like the business is going after higher margins and if you look at things like net cash, the company is basically crushing it.  They grew their net income like 700% and EPS like 500% YoY.  Gross margins went from 18% to 31% YoY.  The question is if the company can keep up this transition of shifting over to higher margin and continue that.  Just my two cents. I’ve also in the past bought stuff that has solid runs like that and still have done well.  Don’t get me wrong, wish it didn’t run as much, but as long as the fundamentals make sense, I’m ok buying. Since their EPS growth is so high, the PEG is actually pretty cheap. 

_hiddenscout

I'm a little biased towards Amazon. I used to work there, so not the biggest fan. If i could just invest in AWS, I would. Not the biggest fan of the retail side of things. My biggest fear with the company is that they always tend to re-invest to keep growing. Not that's a terrible thing, but some times it feels like growth is the biggest thing. Out of the biggest tech names, they tend to have the worst ROIC. Even at these levels, like Google still have a lower PEG than META. Think I would rather go after MSFT at the current valuation compared to META or Amazon.

_hiddenscout

I'm a GARPy investor. I try to keep my stuff simple, but basically I screen for stocks. I like using approaches from Buffet and Lynch. So like I like looking for revenue growth +10% QoQ and EPS growth. I keep the PEG under 2. I don't do a pure value approach, since I'm ok paying fair value price for a good company. Like Buffet said, "It's Better To Buy A Wonderful Company At Fair Price Than A Fair Company At A Wonderful Price". As long as the fundementals make sense for the company, I'm willing buy.

salty0waldo

Linde ($LIN) is still an interesting name to me and not sure if anyone else has this on their radar? The industrial gas conglomerate has been under pressure for several quarters due to soft demand, but the business itself is fairly resilient: traditional industrial gas supply (production + distribution), engineering and design division, specialty materials (hydrogen, rare gases, etc.) division, and medical services. Valuation is mixed at the moment as the forward PE is 23 (discount to itself) but the PEG is 2.6 which is on the higher end of its historic range. The debt level is high vs. historic norms as well which I don't particularly like. Don't own the name but it is interesting to monitor in the materials sector. It has held up far better than its chemical counterparts.

salty0waldo

Yeah, I've just been watching EMR to see how they digest their APC platform for now. I would kind of like if it just keeps consolidating here for a few more quarters, I'm in no rush to get in lol. Good find on CGNX, I would like to have exposure in computer/machine vision so will have to look over the company better than just passing by lol. The valuation seems good overall for growth, 1.96 PEG and 55% EPS growth YoY. The balance sheet looks solid as well, although debt-equity of 0.05 is surprisingly low but seems they operate with little debt over several years, so good on them. Revenue does appear quite cyclic for FY2022 and FY2023 but I suspect much of that was a pull forward in FY2021. Last two years has been more steady top and bottom line performance.

salty0waldo

Interesting name! I am not familiar but looks like forward multiple of 34 and PEG just below 2, so decent valuation. I had liked the automation names ROK, EMR, and JCI but its a valuation issue still, although automation does command a slightly higher multiple I guess? EMR and ROK are more automation plays but PEG are both near like 4 which is high, JCI is more building controls (HVAC, security, etc.)

_hiddenscout

Too expensive for me liking. PEG is well over 2. Very cool company though.

_hiddenscout

Not sure on the decline, but they are just BYPL company. Recently shifting to their subscription model. Charge off rates are a bit higher than other credit names. What peak my interest was the PEG was like .25 a few weeks ago before the name started to run. Probably due to the fact there was a report that a lot of people used BNPL this holiday season.

ChymChymX

It sure hasn't, dumb spending aside they're still the "cheapest" MAG7 based on PEG. They make nearly all their revenue off of ads and that keeps growing YoY. The kids love the gram.

rndoppl

1. don't hurt yourself over money. good people don't think any more or less of you if you have money or not. 2. you're currently tripped up by a combination of ignorance, price hypnosis, and temperment issues. All addressable! You're at rock bottom. And that's a blessing in disguise. You can now learn because you're aware that knowledge is far more profitable than guessing. Most people don't do well in markets because they have no reliable methods to ground their analysis in identifying value. Good investors think technical analysis is at best 10% useful. In fact, good investors know that high quality companies should keep being bought for every dollar their stock goes lower. Price action means little to nothing! Heck, if Wall St turned off their algorithms, every single stock would likely plunge by 30%. Others would oddly spike a bit. And price spreads and volitility would balloon. High frequency trading is used to mesmorize and hypnotize people by making price action appealing. In reality, it's all psychological tricks to get ignorant people in at a bad price. You have to learn some fundamental truths. 1. Market manipulation and painting the tape is more prevalent than anyone wants to admit. 2. The broad markets runs in cycles. It usually goes up 20% a year for 5 years and then down 30% for one year. This averages to be about 10% a year. The reason this cycle plays out is Wall St knows they can essentially beg for cheap Fed money when the cycle collapses and the wealth effect declines to a point where it begins to devastate the economy. 3. Reasonable fair values are rarely offered in markets. The goal of money managers is to drive assets far beyond what they're worth, and far below what they're worth. If you're not aware, you get trapped at horrible prices and never know when to keep accumulating, or when to trim for profits, or when to move on/or simply avoid trading for awhile and just hold. 4. Always keep in mind: Any one stock can do anything. A couple hedge funds can get a hold of an asset a do anything with it. They can drive it to the moon or crater it. 5. Your goal with investing is to diversify, and deploy your capital in ways that increases your chances of overall asset appreciation. You will have assets that dramatically overperform and underperform. That's the game. 6. Options are largely for institutions. There's little point in using them for retail investors. Retail investors don't run trading desks, or engage in market making. There's no reasonable way to know why an options strategy would be prudent or not. You must learn how to value assets! Forward PE's, PEG ratios, price to sales ratio, discounted cash flows, debt levels, etc must be used to understand a reasonable range where an asset will likely be trading at for now, a year from now, and 5 years from now.

Glittering_Water3645

Nvidia have a good estimated EPS growth for next year but that will decline fast in the coming years. AMD is projected to accelerate their growth and surpass nvidia in growth from mid-2026. AMD is cheaper in forward PE and PEG for earnings from 2027 and onwards. TSM is traded higher in terms of PEG because they have a lower current valuation (higher OCF and FCF yield) and also deliver to broadcom and google, which makes it a less volatile investment. If broadcom or google takes market share from nvidia and AMD then TSM still wins.

Lowspark1013

I'm confused where you are getting your PEGs? At least per Yahoo, TSM is at 1.4.... double that of NVDA and near triple of AMD. PEG is like golf - lower is better.

Disastrous_Rent_6500

I just did? It was cheap, now not so much. But the earnings growth is increasing so the metric are like PEG and forward PE still underestimate the future value

Siks10

I April? AMD shares are up 187% since April. It's over 1 now and higher than for NVDA. IDK how you can use PEG and claim AMD is outperforming NVDA currently

Disastrous_Rent_6500

I don’t anticipate anything, all I do is buy when the PEG ratio is around 1 for growth companies. The PE is useless for companies that have massive earnings growth. In April the PE for AMD was 107 but the PEG ratio was 0.9. If you only look at PE, that market is not gonna make any sense to you, and you’ll miss opportunities

Disastrous_Rent_6500

Because the PEG ratio is cheap enough, and the forward P/E and future earnings growth demands it

Weak-Pomegranate-435

My main point was to show the % return, not the $ amount return.. see u can easily generate more than daily trading buy just holding companies with low PEG ratios..

NomSaneMan

Quality as in large cap value stocks. Many indexes do this. Investing in value is a legitimate strategy that many people do. Watching technicals, PE ratio, PEG, DCF calculation, etc. This is not just guessing. These are legitimate strategies with many backtestable successes. Argue about it all you want. It is actually frustrating how often people in this sub know it all about investing and their great wisdom is “put it in an index you’ll never win”. Especially when people *specifically* tell you they want something else. This is not r/bogleheads. People have different ways. I can give you my port allocation over the last year if you’d like as that would be the same anecdotal evidence as my port over next year? Heavily GOOG. 40% of my port. Rest is in Barrick gold, AMZN, BRK/B Ebay, exxon, and some other small percentages scattered around.

agreatcat

What about MarketBeat, or M Fools? So many opinions, don't know what to think. Although, I've learned a lot of the years on looking at financials statements. I mean some stuff, you can make an educated guess if the P/E, PEG, ROI, cash flows, Tangibles assets, Debt to equity looks good. But I wonder what services would provide more inside info of all these?

iamtrid

Buy more GEV ORCL QCOM PEG. all dec19 exp 1-2 strikes out. Oh yeah. 6880c and 6900c 12/2

Crazy_Donkies

Definitely overvalued but their PEG ratio is only slightly elevated if you ask me.  Plus they regularly exceed expectations, they're in a high growth market, custom chips are growing in interest for large data centers,  and they're experts at maximizing revenue.  I've been hearing about people running for the hills from VMWARE for about 2 years and it hasn't actually presented itself in revenue.   I own 400 shares and have done so for years (except from February to May 2025).

dont_downvote_SPECIL

Stock can still go up even if it doesn’t have the same growth rate as Nvidia or AMD. “Best in semis” doesn’t have to mean literally #1 it means top-tier profitability, returns, and consistency relative to the group. PEG is still within a reasonable band of 1 - 2 and a company doesn’t need to beat Nvidia’s PEG to appreciate NVDA is an outlier, not the required benchmark for upside.

AppleTrees2

They have worse growth than both AMD and Nvidia. Best semis profitability? that would be Nvidia, they don't even own the IP of their biggest customer, and potential future big customer in openAI they currently have a worse PEG than Nvidia lol, how can you be bullish on them.

dont_downvote_SPECIL

My $400 price objective for Broadcom is based on 37x CY26E P/E, at the upper end of its 10x-38x historical range, still in-line with 1x-2x PEG framework for high-growth compute vendors, and justified given double-digit EPS growth and best-in-semis profitability, FCF generation, and returns.

LargeSinkholesInNYC

I didn't read a single word, because PEG is below 2.

salty0waldo

Yeah I agree with you that its an interesting name in the space. Broadcom is pushing out all but the big customers, which when I take the viewpoint of the business, is probably a good decision for their margins. I wasn't too familiar with the education customers, but I know many chemical/industrial companies that use virtualized computing have not been happy with Broadcom lol. I can't see how Nutanix doesn't capitalize on this, and they likely may be. The smaller and medium sized customers are likely cutting back expenses at the moment. Also, I suspect many of those businesses are struggling so doing what they can to reduce OPEX. The valuation is interesting here, at a forward multiple of 25 now after this 17% haircut lol with PEG of 2.6 (according to Stock Analysis) but it still trades at a premium to Dell but I am not sure if those two are apples-apples comparison. I really like when someone recommends a name here; I might spend some time reading over the transcript and see what is the motivation here. I suspect whenever a stock has such a rich valuation any guide down cases a fairly large move down. Usually the cybersecurity names are victim to this lol.

_hiddenscout

It's hard to say. The reason why I use fundamentals like PEG is that it helps you know what value is for something. This is what Peter Lynch used, who was a famous investor who beat the market for decades. My train of thought is that if you over pay for something, you lose out on gains. Usually the idea of holding individual stocks is that you want to beat the market in terms of returns, so over paying for something means you lose out on more potential returns. Goes even to what Buffet says, 'It's Better To Buy A Wonderful Company At Fair Price Than A Fair Company At A Wonderful Price'. That's why it's important to help establish a price or what seems like a fair valuation. I mean you can totally skip and there is a chance this thing could easily go back to the 60s, but based off the fact it's expensive, it could still just continue to trade down for a while, until investor find a spot. Like more technical traders use things like RSI to help establish if something is oversold for example. The RSI on this is at 16, so it's in the oversold range for sure. So it's possible it could swing back at some point, but that would be more of a technical short term trade. If you are looking for something as a long term hold, then that's where using the fundamentals helps you establish what seems like a fair price for it.

_hiddenscout

Don't really follow the company, but even at these levels, it's too expensive on how I like to buy things. I'm more of a GARPy investor, so I like to see what the valuation is before I pull the trigger on anything. The forward PE on this seems more responsible, but their PEG is still a bit too high, at least for me. Like Finviz is showing it at 5.14 [https://finviz.com/quote.ashx?t=NTNX&p=d](https://finviz.com/quote.ashx?t=NTNX&p=d) Stockanlysis is closer to 2.63 [https://stockanalysis.com/stocks/ntnx/statistics/](https://stockanalysis.com/stocks/ntnx/statistics/) QuickFS doesn't have the report yet, but there is some positives at least, like gross margins are good for the company and last quarter they have pretty insane ROIC at 54%. Also looks like they had positive operating margins for 2 quarters and improving. Same with EPS growth looking positive as well. It's an interesting name to look at, just for someone like me, doesn't fit into stuff I would buy personally, but doesn't mean you shouldn't!

cinciNattyLight

NVDA trading at forward PE of 23.87, PEG of 0.70, totally a bubble… /s

jrex035

>To each their own, but I do see the PEG for RL at closer to 1.7 than 2.16 Interesting, was pulling numbers from Yahoo Finance not sure what the disconnect is

_hiddenscout

To each their own, but I do see the PEG for RL at closer to 1.7 than 2.16 [https://stockanalysis.com/stocks/rl/statistics/](https://stockanalysis.com/stocks/rl/statistics/) [https://finviz.com/quote.ashx?t=RL&p=d](https://finviz.com/quote.ashx?t=RL&p=d) [https://www.morningstar.com/stocks/xnys/rl/valuation](https://www.morningstar.com/stocks/xnys/rl/valuation) Buy what you like man, but I think it's a good price for a great company. Overall, performance is much better in the asset and can see it continue, since they are heritage brand. But do you do man.

jrex035

RL is way overpriced compared to LULU by just about every metric. * PE: 11.58 vs 25.87 * Forward PE: 12.63 vs 23.53 * PEG: 0.87 vs 2.16 * Price/Sales: 1.89 vs 2.92 * Price to Book: 4.59 vs 8.22 Not really seeing the value here for RL

Impossible-Gas8916

Nvdia forward P/E and PEG ratio alot lower than google , just saying .

jrex035

I think now is probably a decent time to start a position in NVO provided you understand that a) it's price is still falling and may continue to do so in the short to medium term, b) the company has made some significant missteps in recent months, and c) it continues to face significant headwinds. Worth noting that as of today, NVO is down 47.5% YTD, 57% YOY, and ~66% from its ATH on July 4, 2024 and that it currently has a TTM PE of 12.5, forward PE of ~12, PEG or 1.54, P/S or 4.35, and P/B of 8. Personally, I've been "buying the dip" on NVO for months now and it just keeps on falling. Its my worst performer this year by a longshot. I expect that it will turn around sooner or later though, and I'm planning to hold it for at least a year or two while the company sorts out its issues. If you do want to buy, maybe start with a small position or wait for the downtrend to stabilize or reverse.

_hiddenscout

A lot of the engineering and construction names have been great too. FIX for example has a higher multiple, but a much lower PEG because of how much EPS growth they are seeing.

BanditoBoom

Forward P/E on S&P 500 is sitting at around 21 or so. Forward P/E on Mag 7 is sitting around 28. But the PEG ratio for the index is sitting around 1.3, which is about average. Clearly the MAG 7 plus a couple of more I would throw in are pulling the index up in terms of P/E. But I would argue there is a rational growth expectation to it. Why because the vast majority of these large and mega caps are remarkably profitable with very high quality earnings. It is a ln extremely false comparison to compare today to the .com crash. Virtually ALL of those companies were not profitable and had no rational reason for the valuations they had. It was the epitome of over exuberance. This is not that. I would argue this market deserves a higher premium than the 2000 market. Or even the 2010 market.

Glock7enteen

Nvidia’s PEG ratio is 0.8 Even at its $4.4 trillion valuation, it is still undervalued by many metrics.

nick_riviera24

Great Q. My thesis is based on some key numbers and a narrative. For me I like to see strong ROIC. I love a PEG near 1.. I like an EPS CAGR above 15 with increasing OM. I like a narrative that demonstrated a durable advantage in their field.

Pristine-Bluebird-88

What is their PEG ratio? If it's low it's supposed to imply growth. I didn't see much growth on a overview of their financials. Don't know. New to this one.

_hiddenscout

Sorry about the wait, was waiting until I got to my computer give a response. Easier than typing on the phone lol. So I only screen for fundamentals, since I invest more than I trade. Looking at the moving averages is more of a trading thing, same with like RSI. You can combine the both to try to get better entries into some names, but I just keep it simple. I'm a GARPy investor, which is growth at a responsible price. My style takes from pretty much Buffet and and Peter Lynch. So I look for stuff with a PEG under 2 and offer good ROIC and then growing revenue and EPS. Plus I add in quick ratio, which shows how well a company handles their debt. PEG is what peter lynch used. I like it because it takes PE and EPS growth into account. So something might have a high PE, which can make it look expensive, but if they are also growing EPS really quickly, then it doesn't look as bad of a deal. [https://www.investopedia.com/terms/p/pegratio.asp](https://www.investopedia.com/terms/p/pegratio.asp) You end up with a list of like 114 stocks to look through: [https://finviz.com/screener.ashx?v=111&f=fa\_epsqoq\_o5,fa\_peg\_u2,fa\_quickratio\_o1,fa\_roi\_o10,fa\_salesqoq\_o10&ft=2&o=industry](https://finviz.com/screener.ashx?v=111&f=fa_epsqoq_o5,fa_peg_u2,fa_quickratio_o1,fa_roi_o10,fa_salesqoq_o10&ft=2&o=industry) Next step if you have to dig into each name. There are some industries I avoid, like biotech since I don't really understand the businesses that well or find it that interesting. Next step is look at the companies history on [quickfs.net](http://quickfs.net) From there I look at the quarterly growth and see how margins are looking and the trend of revenue growth and ROIC. If both those look good, next step is to read the last 2 earnings transcripts and look at earnings presentation. From there, it's basically a decision if I want to own a business or not. If you look at post history, I talk more in the daily sub and bring up names all the time, basically 90% come from screening and research.

_hiddenscout

Sorry about the wait, was waiting until I got to my computer give a response. Easier than typing on the phone lol. So I only screen for fundamentals, since I invest more than I trade. Looking at the moving averages is more of a trading thing, same with like RSI. You can combine the both to try to get better entries into some names, but I just keep it simple. I'm a GARPy investor, which is growth at a responsible price. My style takes from pretty much Buffet and and Peter Lynch. So I look for stuff with a PEG under 2 and offer good ROIC and then growing revenue and EPS. Plus I add in quick ratio, which shows how well a company handles their debt. You end up with a list of like 114 stocks to look through: [https://finviz.com/screener.ashx?v=111&f=fa\_epsqoq\_o5,fa\_peg\_u2,fa\_quickratio\_o1,fa\_roi\_o10,fa\_salesqoq\_o10&ft=2&o=industry](https://finviz.com/screener.ashx?v=111&f=fa_epsqoq_o5,fa_peg_u2,fa_quickratio_o1,fa_roi_o10,fa_salesqoq_o10&ft=2&o=industry) Next step if you have to dig into each name. There are some industries I avoid, like biotech since I don't really understand the businesses that well or find it that interesting. Next step is look at the companies history on [quickfs.net](http://quickfs.net) From there I look at the quarterly growth and see how margins are looking and the trend of revenue growth and ROIC. If both those look good, next step is to read the last 2 earnings transcripts and look at earnings presentation. From there, it's basically a decision if I want to own a business or not. If you look at post history, I talk more in the daily sub and bring up names all the time, basically 90% come from screening and research.

_hiddenscout

I remember. It’s one of those names I’ve kind of loosely followed for a bit. A ton of restaurants use them near me.  Seems like it’s been selling off for a bit, but starting to look interesting to from a valuation standpoint  Stock analysis is showing the PEG at 0.95 https://stockanalysis.com/stocks/tost/statistics/ Not sure why share count has increased so much, but still has a decent amount of insiders holding.  Just seen it on the screener for a bit and was going to start digging into them. 

_hiddenscout

I get that, but you need more than PE to help measure things. Like PEG is a better measurement than PE to find a valuation of a company, since it’s taking EPS growth into account.  Plus you need to know the industry when even talking about  PE. A software company trading at a PE of 5 is different than a bank trading at the same PE level. 

_hiddenscout

There are other things that give better views. Like I prefer PEG over PE since that takes EPS growth into account.  It was Peter Lynch’s go to. 

SundayAMFN

Their forward PE is about 28 which is overvalued, especially when you consider that that’s assuming the stock price remains at 180 for a year. PEG depends on when you calculate it from but it really doesn’t qualify as a “fundamental” because it’s 3rd grade level extrapolation

InevitableAd2436

PEG ratios aren’t even in bubble territory lol

InevitableAd2436

PEG ratios are not even absurd right now. You can’t look at Shiller PE and think we’re in a bubble lol Plus there’s still good deals out there. Made $25K on PACS today and they’re still undervalued.

Iamshaydon

P/E is not the best indicator especially with companies growing so quickly now. Growth is at such an unprecedented rate that you need to look at PEG ratio, price to earnings to growth

Me-Regarded

Nvda can PEG me any day

cinciNattyLight

NVDA forward PE of 27 and PEG of 0.78 for a $4.5T company is WILD.

scipio_aurelius

Not sure, I’ve never really understand the connection between price and sales multiples with these companies. For me, looking at PEG ratio and future revenue growth rates makes more sense grounded in the context of their forward PE ratio. What am I paying now for the expected growth of this company in the future?

No-Contribution1070

For a 5 trillion dollar company they have a P/E of 50, a PEG of 0.8(this is really good). They are not overvalued, they are slightly undervalued. After earnings today people will see this and the stock will pump.

SundayAMFN

Nobody is denying that Nvidia's PEG is around 1, depending on how many months you go back to calculate growth. The problem is that PEG dumbs down extremely complex speculation into a 3rd grade math formula. Extrapolating past earnings is somewhat reliable, extrapolating past annual growth is not. The bubble may not burst tomorrow, but investors are right to be cautious on this one.

internetroamer

>PEG youselves No thanks I was PEGged enough by my NVDA calls lately

No-Contribution1070

Alright, I see I have some downvotes. I was wrong, NVDA PEG is actually now 0.80 which is even better! This suggests NVDA is fairly valued or slightly undervalued. Before you downvote, maybe go search for NVDA's PEG youselves and see what you find.

No-Contribution1070

You are painting the wrong picture. NVDA has a PEG of 1. Which is excellent. This is the metric that matters more than P/E. Regardless, a P/E of 50 is actually not bad for a 4.5 trilliion company.

_hiddenscout

Don't own it, but what an interestin stock SEZL is is. Still growing revenues at pretty high rate, with a relatively low float and decent amount on of insiders that own the stock. The fundamentals look so wonky, with like stock analysis showing a PEG of .05 and Finviz showing .37 [https://stockanalysis.com/stocks/sezl/statistics/](https://stockanalysis.com/stocks/sezl/statistics/) [https://finviz.com/quote.ashx?t=SEZL&p=d](https://finviz.com/quote.ashx?t=SEZL&p=d) Seems like it has really sold off from it's highs. Just don't know if I want to buy a BNBL company, but what an interesting disconnect between what the market seeing and the fundamentals.

_hiddenscout

Yeah, I keep my investing simple. I post more in the daily but I take parts of Buffet and Lynch to develop how I invest. I look for companies with PEG's under 2, offer high ROIC and growing revenue double digits. Screening was the biggest game changer for me in terms of investing.