PEG

Kantmzk

Back in June 2026, mi hear some Scottish Rasta guys a talk seh Vertex mek di man rich, an’ him woulda go hard pon it. Looking at di current financials, dem kinda back up di thesis too — PEG around 0.56, an’ forward P/E somewhere round 13 or so. Mi a think fi start build a position soon. Bumbaclaat, rasclaat — dis Rasta Scot mighta actually know weh him a talk ’bout finna take a large position from MSFT (currently own 342 shares) and put id on bumbaclaat Vertex

ConsiderationFit7681

Why would you contemplate selling your shares when SKHY is up 30% in less than a month and 8% today? SKHY has a P/E of 7.77 and a PEG ratio of .02. Those numbers suggest an undervalued company and attractive investiment IF other factors such as cyclicality, debt levels, future earnings estimates, profit margins, etc. are considered. Stocks are essentially a long game with MANY examples of short term wins if you pick the right stock. Buy what you know. Buy what's happening around you. Do you see AI becoming more dominant in practically every measure, not just here but around the world? I'd bet my next dividend check that AI has a toehold in the DPRK. Memory and storage plays should be balanced with investments in other sectors since money rotates in and out depending on macro events, institutional manipulation and retail sentiment. I just finished reading One Up on Wall Street by the immortal Peter Lynch. If you want to learn how to evaluate stocks and make informed investment decisions, this book should be at the top of your list.

dieharddubsfan

I think Broadcom is a name that most in the industry are already quite familiar with. Given they design custom chips for most of the big players, I think no doubt their business will do well as long as the AI infrastructure build-out continues. However, looking at the [fundamentals comparison table of AVGO and NVDA](https://www.stock-table.com/fundamentals?public_uuid=6e16b17d-bf31-4fcb-9c15-4110febd5300), NVDA is a better buy for me based on almost all the key value metrics, such as forward P/E, PEG, ROIC. However, both would be quite susceptible if the AI bubble bursts eventually.

i_empathetic

NVDA opened today with a 0.36 PEG ratio. Do you know how insane that is for a 5T company?

BabyQuesadilla

RDDT is transitioning from a growth stock to a mature stock. How often do we see multiples expand as a company gets older? APP has better growth figures with lower multiples. PINS has way lower multiples (9 fwd PE) and similar EPS growth expectations. Both have PEG of 0.4.

ptexpat

Given current price they are trading at a TTM PE (adjusted / non-GAAP) of \~53x. Expensive when seen standalone but TTM EPS growth ((adjusted / non-GAAP) was \~40% so a TTM PEG of \~1.3x is not that expensive. It comes down to whether they can sustain this level of earnings growth going forward. Based on their annual guide at the end of Q2, implied YoY adjusted EPS growth would be \~40%. So the forward PEG multiple seems reasonable.

AllRightLetsSeeIt

The market seems to be ***deeply*** skeptical, in fact. Their PEG ratio is like 0.29, historically quite low for them and much lower than the rest of the MAG7.

i_empathetic

Its PEG ratio is down to like 0.35 at this point. *Insane* value proposition, it only has been getting cheaper on an earnings basis for like 18 months straight. Doesn't matter apparently heh.

xtric8

Its not a bubble because 90% of people think its a bubble. They always use the Shiller p/e CAPE to prove their point. Issue with that is is shiller uses a combination of valuations including 10-year trailing p/e. So todays price over past 10 years earnings. If you use PEG ratio, you get opposite results because of present and future growth expectations. Now, maybe those expectations are too lofty? I don't know but current earnings growths are actually quite high

i_empathetic

NVDA PEG ratio is like 0.35 now, it literally has never been cheaper on an earnings growth basis. Bonkers.

AllRightLetsSeeIt

It’s all about the PEG ratio. Quick and current ratio too.

Namtabmal

Google still with forward PE of 17 and 0.93 PEG. What am I missing here? 4$ away from the 200 sma as well. Isnt this an obvious buy?

Capital-Pineapple961

How can the “perfect” price stay the same when the company keep growing? It is not priced to perfection, is it priced as to have sustancial risks attached. Whatever those risks still exist in full force we’ll have to see, but if they ever stop to exist or mitigate… this is not a price for NVDA at 0.3 PEG

STOPbuyingPUTS

The stock was kind of a no brainer buy going into the print. PE, PEG, and P/fcf valuations were all at decade lows; plus the year ago quarter was going to be an easy beat on YoY revenue growth. But of course hindsight is 20/20. Here’s to hopium that my Oct 16 $210 calls print. 🚀

BigWarning8696

And if they were valued at their 5 year average P/E and PEG, NVDA should already be close to $400. There's a lot of room to run

BigWarning8696

I think there's a pretty good chance it pops only because its valuation is much better than in the past. If it were at its 5 year average PE and PEG, the current price would be close to $400.

TranzitBusRouteB

How low would low will AVGO really go, 19 forward P/E and 0.40 PEG

W_Edwards_Deming

> This statement is incomplete. Over how long of a period do you have to beat something for a strategy to be successful? Arbitrary. A day trader can achieve success in seconds, a buy & holder may take a lifetime. You seem to prefer 10 years for reasons unknown. I simply looked at my data, saw I had beaten the market and wanted to discuss. This turned out to be the wrong place, for the most part. That said, one guy gave me some very useful advice regarding Earnings yield vs. the 10 year treasury bond. I am grateful to him. A few others were polite and some suggested ETFs, at least a couple of I am looking further into. >ARKK massively outperformed VTI over the single year of 2020 by a MASSIVE margin. Would you say ARKK is a successful investment strategy? Consider that VTI is now trading at 378 while ARKK is now 86. Buy low, sell high. I am not familiar with those but ideally one would have bought ARKK in 2019, sold it near its peak and bought VTI at its lowest and perhaps sell it today to buy ARKK. I keep an eye on the indicators to know what to do and when. >it only lasts a short amount of time before they underperformed Things go up and down but no need for the fatalism and ETF / Mutual fund only fanaticism. >so much research shows that most stock-picking strategies don't work out. Again, you seem to have your mind made up. My results don't matter to you and there isn't much reason for our interaction. >The perception of rudeness must come from some idea that people have to speak to you in a specific way to show deference or respect. This is the internet, no one knows anything about you and doesn't owe you any specific communication preferences that you may be accustomed to. I don't know if you grew up privileged and surrounded by money so people who knew that would bend over and talk to you in the way you're accustomed to, but this is not it. Hilarious. This is a 14yr old account and I grew up without indoor plumbing or electricity. Once upon a time Reddit was a place where in-depth evidence based discussion was the norm, and it still happens. Even in here with some. You seem to be trying that approach but without any open-mindedness about the OP. Instead you are longform telling me your pre-existing deterministic conclusion. No need for me for that, you can tell the next one the same, and likely will. >Go back to some point (preferably 10 years ago) in the past and make virtual stock purchases based on your criteria (it will be a different set of stocks). Then track how those stocks have done over the last 10 years compared to market index trackers. Where am I going to get all the data listed in the OP for a stock 10 years ago? I can get the stock price form 10 years ago but the ROC, PEG and etc? >Why would you say this to someone you know nothing about? Why would you lump an individual with a group? You mean like you suggesting I am a naive & privileged third-grader? You are saying the same thing most of the people in here have said, albeit longform. Are you suggesting I am misunderstanding your deterministic conclusion that ETFs are better and strategies such as are in the OP are a gamble near certain to fail? >back-testable My screen is of a variety of data. Where am I getting that level of detail from 10 years ago? Looking into it myself it appears I'd have to pay for something like Portfolio123? I that your suggestion?

W_Edwards_Deming

Good points, I agree PEG is more important than P/E. I care most about ROE, possibly least about dividends. They weren't ranked in order of import in the OP, but closer to the order they are in on my screener. When I first started out I focused on the highest dividends possible... and had a bad time. For earnings I have focused on EPS past five years, you think it important to look at the EPS and divide it by the price per share? For example REPX has an EPS of 5.44 and a price of 38.17 5.44/38.17=0.1425203039035892 10 year treasury yield is 4.736%

Disastrous_Rent_6500

Same, I have a Warren buffet “buy a great company when it is truly cheap” approach as well. I couldn’t invest any other way. Most people just fomo and coin flip into hot stock picks and think it’s “investing”. Since they assume everyone else is doing the same thing, they think outperformance is 100% luck. Opinion: I since I do think you’ll listen, I will try and actual give a critique. When It comes to actual PE ratio, you need to understand it doesn’t matter as much as you think. In most cases the PEG ratio just matters more in most cases. If the company is growing, a PEG ratio bellow 1 will tell you everything. Now when it comes to dividends you got the right idea comparing it to bond yields, but what truly matters is not the dividend yield but the “earnings yield” instead. Dividends are just a distribution of earnings. Horrible companies can have good dividends even with negative earnings. Always just compare Earnings yield and the 10 year bond to actually figure out if the stock is truly cheap. Most companies start buying back their stock when the earnings yield is well above the 10 year yield.

Cra_Sh10

0,5 forward PEG btw

W_Edwards_Deming

I didn't mention the PEG, which is great. ROE is my first metric and it fails. P/E is one of he highest I have seen, as with the P/FCF. No dividend, profit margin barely passes.

Disastrous_Rent_6500

The PEG is not absurd

Kantmzk

Costco has a PEG of 4.64 according to Yahoo Finance and 3.70 according to Finviz. Either way, it is very richly valued, even if we account for the safety premium as being a factor.

IBUYVOTES

AVGO looks like a really solid play right now. Earnings are in roughly two weeks, so you have a catalyst soon. Meanwhile it is well below ATH(-23%) with a Forward PE of (24.1) and PEG of (.51). I'll take that bet.

Rav_3d

No. There were no real earnings in 2000. There were [PETS.COM](http://PETS.COM) companies with no business plan commanding hundreds of millions in valuation. Today, NVDA trades at a forward PEG under 0.5. Then, CSCO traded at a forward PE over 100. Infrastructure providers are seeing tremendous earnings growth (circular financing nonsense aside). Today's market is a lot more like 1998 than 2000.

Kantmzk

$WM is generally far riskier than most people realize, especially the crowd thanks thinks "there will always be trash and this company will therefore always be in business." The trash business is far more complicated than that. It currently trades at a PEG of 2.55 which means it is really quite expensive. Of course, that provides stability, but it is hardly "risky" in terms of growth but I would argue risky to think it is affordable and that would beat simply owning the S&P 500.

Kantmzk

I would screen for stocks with a PEG/PEGY ratio under 1, forward p/e under 25, high earnings growth, and rising EPS.

No_Yogurtcloset_2547

You’re approaching this from the wrong angle. Suppose you buy shares of company A and hold them for a year. During that time, the prices and fundamentals of every company you don’t own are changing too. When you eventually sell company A, you pay tax on the gain and then have to decide what to do with the proceeds. What do you do? Likely reinvest into another company. So you buy company B. But company B may already have appreciated while you were holding company A. Meanwhile, the person selling you company B now has the same decision to make with their proceeds. Maybe they use that money to buy company A, which you just sold. Both of you realized a profit and switched investments, but neither is necessarily in a better position. You have simply exchanged one asset for another while creating a taxable event. This is essentially how the stock market works, of course with more people in between. But whenever you sell a share in a company, someone else buys it. And vice versa. And both think they make the right decision, although only one of you can be right. The better approach is to value each company based on its fundamentals: future earnings, P/E or PEG ratios, its margin of safety, or whichever valuation framework you consider appropriate. Past price movement alone tells you very little about whether a stock is attractive today. That is why selling a stock simply because it has gained 80%, then buying another stock whose price has remained flat may be worse than doing nothing. The company you ignored a year ago is not automatically a better investment today. Its share price has moved, its business has evolved, and its prospects have changed too. Nvidia is an extreme example. Even after its stock rose roughly tenfold, it was considered cheaper relative to its prospects than before because expectations for its TAM and future earnings had increased even more than its price. A stock is not inherently better because it has fallen 50%, nor worse because it has risen 100%. A stock that has gained 1,000% can continue to 10,000%. What matters is not how far it has already risen, but whether its future value still exceeds its current price. Apple rose roughly fourteenfold from 2006 to 2016 and then multiplied again over the following decade. In principle, it could continue compounding for decades. Past gains do not impose a ceiling on future returns, just as a flat share price does not guarantee future appreciation.

skymagic

everyone here has the same PEG ratio 😎

GoZukkYourself

You never asked me about my PEG ratio 😏

GMVexst

Then why isn't it following the same metrics as other AI stocks? If you all were so confident you would be selling your homes and putting it into MU which compared to other AI stocks is at an unprecedented value with a PEG under 0.1, a forward PE of 11, and growth of 166%. How is it this cheap?

skymagic

I meant PEG rate 💪

skymagic

AOC's PEG ratio on WSB is 100% 🤣

Namtabmal

GOOGLE like 16 forward pe now with 0.9 PEG. I mean how can you not buy? Someone convince me not to

ElkQuiet1541

why is everyone going SMCI puts? much more undervalued than Dell/HPE (less than half PE and lower PEG)

Silver_Variety_1108

I’m not a day trader. I buy growth stocks when they are underpriced. I buy low PEG ratio stocks. For example, I bought APP when it was $70 per share. I sold after I made a very nice profit. That stock is now $339 per share. I typically hold for 1-2 years, but of course every investment is different. I don’t think you can know what a stock will do in the short term as there are so many different variables that go into the valuation. Of course, during a Bull market, it’s much easier to pick winners. In fact, I think you really have to consider the overall market before you even to decide to invest in individual stocks. Most people don’t have the time or the patience to do enough Due Diligence before investing. I’m an accountant, so I spend a lot of time reading Financial Statements, 10K, etc. I have done pretty well in my opinion. Unless you are willing to spend the time to really understand the company, the industry and the overall market, I would recommend investing in an index fund ( for example QQQ). Some people are good at timing the market and I give them credit. Some have various strategies that work for them. I follow the GARP (Growth at a Reasonable Price) strategy. Currently, I own $MU. They have a forward PE of 6 and a very high growth rate. I think it’s a good long term investment, but each person has to do their own research and invest accordingly to their own risk/reward tolerances. Good luck!

BigWarning8696

Well any metric can give you a false sense of security, but given that the last 2 quarters, companies in the QQQ have beaten ER projections by an average of 31.4% above consensus, the PEG might actually be too conservative. To me, its just best to assume that the pattern continues until it doesn't. Then get out quickly

Careless-Place-170

PEG is a fucky metric when everyone keeps guiding higher and margins keep growing. If earnings miss or orders are cancelled PEG shits the bed.

BigWarning8696

I'm not a permabull or bear, but I will give you the bull case. Forward PEG for QQQ is at 1.00 which is close to a 20-year low (historical average is 1.35-1.45). For SPY the PEG is lowest in nearly 30 years

Capital-Pineapple961

The final PEG 0.00, fullport when it happens

i_empathetic

Correct which is why NVDA's PEG ratio has been cut in half to 0.44 the last year and traded mostly sideways, with a forward P/E below SP500 average. NVDA's behavior the last year is a glimpse into memory's future from a stock price perspective, even if there is no bubble pop.

Kitchen-Tumbleweed83

PEG stock is gonna be the new hype trust

Kantmzk

Yes, just look at the numbers on Finviz even with the recent run up. MSFT is the only other valuation contender but that had a much bigger run up of its own. [https://finviz.com/stock?t=NVDA](https://finviz.com/stock?t=NVDA) |Forward P/E|**17.16**| |:-|:-| |PEG|**0.36**|

klowd92

Can you elaborate with evidence? I am asking because the P/E from NVDA is 30. And the PEG is well below 1.0 For MU (miron) the P/E is 20.. I don't see any crazy infinity money promises like you claim.. In fact most of these companies already have an incredible high amount of revenue, even considering their high expenses. And that isn't even taking into account future growth.. TSLA has P/E 300, which seems overvalued, and maybe takes into account an enormous growth in revenue.

Comfortable_Sir_6104

Actual metrics like P/E, P/S, PEG, TAM, DAUs, margins, revenue growth. Like, you know, a non lobotomized person.

Kantmzk

AMD looking so good have you seen its insanely PEG of .52 how are you not loving this company especially with its

Kantmzk

AMD looking so good have you seen its insanely PEG of .52 how are you not loving this company

mobap99

Palantir is going to make 5B this year, is growing at 90%, and has a market cap of 300B. So PE 60 or PEG 0.67. That’s cheap. Burry could have bet against unprofitable, leveraged, truly overpriced companies, but he picked cash machines PLTR and NVDA instead.

folded_horizon

PEG ratio is how you evaluate growth conpanies.

Amdvoiceofreason

What an absurd opinion lmfao...They're poised to make $30+ a share next quarter! Their PEG ratio is anywhere from .03 to .57 which is an insane bargain... Are fuckin with us 😂

PuzzleheadedTill8635

Grindr’s PEG ratio looks pretty appealing

Pin-Last

Don’t know where to start. It’s been proven that minute to minute/hour to hour movements are too chaotic to predict, that’s why day trading doesn’t work. But longer term technical (price action) analysis is taken seriously by every house on Wall Street. Rotation, swing trading, scalping, active trading… all the different iterations are recognized as legit. Stock price, PE, PEG, etc form long term “channels“ or “bands” on the chart that traders like me use to choose entries on stocks they know they want to own (solid companies, like u said), largely because other traders do, it’s like a group cheat. Using moving averages or \*any\* indicator as a guide is a form of timing. We use these tools to figure out when to buy companies we’ve researched and know we want to own, just not necessarily at the current price. So all limit orders are timing. But no one ever became a billionaire by just holding great stocks… they trade, trade around core positions, rotate, and hunt for value on what was too expensive yesterday. Warren Buffet too, the arbitrage, I could ramble about this forever lol. But u can make millions just holding the best companies for years or decades, no shade, u do u.

arikshkol

A 0.1 trailing PEG on a mid cap feels almost like a glitch, especially when compression comes from earnings ramping, not a price crash. Earnings are real but the question is forward sustainability, ad rates and user growth aren’t exactly predictable right now. They just [beat Q2 across the board but shares slid 5% after-hours](https://wiseek.ai/ticker/rddt/news/reddit-q2-beats-across-the-board-yet-shares-slide-5-after-hours-05210f143799ebeff2d526f2825ad4ecf29c8fd4d427ab0eab6153b393bfc76d/) anyway, so the market’s clearly pricing something tighter.

imacompnerd

RDDT is absolutely *not* valued as a high growth stock. It has a PEG of something like 0.6. Fucking WMT has a PEG of 4, which is 7 times *worse* than RDDT. Hell, MSFT has a PEG of 2, which is 3 times “more expensive” for growth than RDDT, and RDDT doesn’t even have meaningful capex like MSFT does.

mm_newsletter

That 0.1 PEG is doing more work than it should. When earnings start near zero, the growth rate can make the ratio look absurdly cheap. I’d want to see what it looks like once the comparisons get harder.

BlauerDunst420

Whats the problem OP, Reddit is quite solid and has a PEG \~0.1

_hiddenscout

Stockanalysis has it at TTM PE of 30 and Forward PE of 23 with a PEG of .6, which is pretty close with both those sites. [https://stockanalysis.com/stocks/rddt/statistics/](https://stockanalysis.com/stocks/rddt/statistics/)

_hiddenscout

Trailing look like 32, forward PE is 19 with a PEG of .4 [https://finviz.com/stock?t=RDDT&p=d](https://finviz.com/stock?t=RDDT&p=d)

MasterpieceOk8986

So that's why I set the condition of eight consecutive quarters of profitability. It's also a prerequisite if you want to use the trailing PEG ratio properly.

Narrow-Celery-1661

Not surprising when Forward P/E is 4 and PEG is 0.2.

TomatoHistorical2326

More expansive how? Both of Amazon and Google had similar PE and PEG ratio 

iloverunning11

Yeah kinda, but the stock market cares way more about US DAU.. Hence this price action, but it's an extreme overreaction, like after this dump where are we sitting at? A 25 TTM P/E and an 18 forward P/E with a 60% YoY growth lmao. Like this has to be PEG around 0.35

Haikoe

Apple PEG is almost at 3 Why would u buy at these prices. There is no upside at all. Best case is sideways for 3 years

richbeezy

The market corrects 10% and OP is complaining about stocks always being "green"? PEG ratios matter. We aren't in a bubble when PEG's on the major tech stocks are around or below 1.00 Argue with me all you want, but I feel confident that with my over 26 years of experience in the markets will trump some college kid's 1-2 years of "experience".

toonguy84

$PGY Actually profitable, profits are growing, revenue is growing, all value metrics (PE, Forward PE, Price/Sales, PEG) are very low. I don't know why the market hates this business but it's really cheap.

Clackamas1

It has a forward PE of 4.5 and a PEG of .028. Insanely cheap by any measure. ARM has a FPE of 111.

Clackamas1

MU's Fpe is 4.5 PEG is .028

femalediesinendgame

I mean if you can find me a company that has META’s MOAT, an EV/EVITDA of 10.7, a forward P/E of 13, growing revenue at 28% YOY, and all that on an operating margin of 41%, a PEG of 0.7 and an absolute fortress of a financials sheet, I’ll buy it right now. Did I even mention the ROIC sitting at 21% ? META is a fortress and idgaf how much you hate that fuckface of a CEO, I wouldn’t invite him to my birthday party either, but the numbers are there and they keep coming. This thing is going to be over 1k a piece in less than a year.

H4RZ3RK4S3

No, fundamentals didn't change. Alphabet earnings are proof for that (though only a limited one until the others had their earnings). The SK Hynix earnings today, actually showed the same. The dip we saw here was basically a reality check of: yeah, our expectations are perhaps very high, when they should only be high. But, if you look at PEG ratios, forward P/E, it's current P/E, and the order book, MU Is currently undervalued.

JimiForPresident

PEG <0.1 is bonkers. I’m buying SNDK every day through earnings next week.

RainieY

NVDA has a forward PE of 21.68 and a PEG ratio of 0.37. GOOG has a forward PE of 16.51 and a PEG ratio of 0.95, META 17.99 FPE / 0.88 PEG, MST 20.39 FPE / 1.2 PEG. AMZN is slightly more expensive. AAPL is very overvalued at 38.83 forward PE and 2.94 PEG.

RainieY

NVDA has a forward PE of 21.68 and a PEG ratio of 0.37. GOOG has a forward PE of 16.51 and a PEG ratio of 0.95, META 17.99 FPE / 0.88 PEG, MST 20.39 FPE / 1.2 PEG. AMZN is slightly more expensive. AAPL is very overvalued at 38.83 forward PE and 2.94 PEG.

RainieY

IDK. NVDA has a forward PE of 21.68 and a PEG ratio of 0.37. GOOG has a forward PE of 16.51 and a PEG ratio of 0.95, META 17.99 FPE / 0.88 PEG, MST 20.39 FPE / 1.2 PEG. AMZN is slightly more expensive. AAPL is very overvalued at 38.83 forward PE and 2.94 PEG. Most of these companies are either very cheap, cheap or very comfortable buys. CapEX is not indefinite, just like redoing the roof in your house, there's a build-out phase and then the capex will slow down, although people are saying it will be like this for the next 100 years, that's not the case. What is true, is that their revenues are growing a lot.

ryzetard

appl selloff after options expire worthlessly will be epic. earnings + rotation pump to like 35 forward PE while PEG is like 2.5-3 and CAGR at 10% or something if i calc it correctly in my head. dunno what kind of crazy retarded numbers they would need to post to keep this valuation

ThinkingOfTheOldDays

bull case is that forward PEG ratio of S&P has rarely been lower in the modern era

touuuuhhhny

MU PEG ratio at 0.03, lol

edward_newgate-_-

You’re right, mature companies can be growth companies. And growth doesn’t have to be super risky. But creating a screener that favors mature companies is also not good. Look at the formula for ROIC; it favors mature companies vs small growing ones that are reinvesting heavily. It favors companies that have already invested in their infrastructure and are capturing profits. Smaller growing companies don’t have the same level of profits. I think it could be good as a context metric (if all things are equal then higher ROIC is better) not as a primary screener. Regarding analyst estimates, if you’re talking about trailing PEG then sure no analyst estimates. But that’s not what most people use they use the forward version which by definition relies on estimates. Again, look at the formula.

_hiddenscout

Mature companies can still be growth companies. Rather than focus if something is matured or not, you should just focus if the company is quality and if the valuation makes sense. I'm a GARPy investor, which means I want growth at a responsible price. Not sure why you brought up analyst estimates, that was never mentioned by me. Just added in the idea of using P/FCF, which gives you a better idea of how the company is valued. Like this is an example of a screener I've been using for years: [https://finviz.com/screener?v=111&f=fa\_epsqoq\_o5%2Cfa\_peg\_u2%2Cfa\_pfcf\_u40%2Cfa\_quickratio\_o1%2Cfa\_roi\_o10%2Cfa\_salesqoq\_o10&ft=2&o=industry](https://finviz.com/screener?v=111&f=fa_epsqoq_o5%2Cfa_peg_u2%2Cfa_pfcf_u40%2Cfa_quickratio_o1%2Cfa_roi_o10%2Cfa_salesqoq_o10&ft=2&o=industry) The list is around 133 companies with good ROIC, Quick Ratio, P/FCF, EPS Growth, Revenue Growth and PEG under 2.

edward_newgate-_-

Thanks. Intentionally excluded ROIC because it favors mature companies. PEG is an interesting suggestion, as is quick ratio. Although I’d prefer not to rely on analyst estimates if possible.

_hiddenscout

I add in things like ROIC, PEG, Quick Ratio, P/FCF PEG is basically what Peter Lynch used to look at companies. Since PE doesn't include EPS Growth, PEG can get you a different look at growth names. ROIC is something that Buffet would look for in companies. Usually high ROIC companies show strong economic moats, efficient capital use, and powerful compounding growth without needing constant heavy reinvestment. A high quick ratio ensures a company has enough cash, marketable securities, and accounts receivable to easily cover its short-term debt without needing to sell inventory. This just shows me that management is good with inventory levels and debt. I think P/FCF also gives you a better insight into the company valuation than just PE

i_empathetic

On an earnings basis it is the cheapest it has been in at least 15 years. PEG ratio is gonna be 0.42 or some shit tomorrow

Weak_Alternative_168

On LLY your read looks basically right to me, the PEG is doing the heavy lifting to make the multiple ok, so it really rides on the growth actually showing up. Where id gently push is the GENB logic, mostly the part about using NVIDIAs ~$12.80 as an anchor. That stake is about $10.4M through their venture arm, which for NVIDIA is a rounding error, and NVentures tends to invest to pull companies onto its own compute and bio tools. So their entry price mainly tells you they want the AI-drug-discovery space to grow, its a weak signal that 13 is a floor. Underneath it this is a clinical-stage bet. No approved product yet. The $7.2M of revenue is from Amgen and Novartis research deals rather than product sales, and the cash only runs to 2028. So it mostly comes down to whether the Phase 3 asthma readout lands before they need to raise again and dilute. Thats the piece id size the position around.

lVloogie

What part of the valuation do you get that from? The forward PE is 23, and the PEG ratio is 0.32. Those are both very low relative to the industry. It actually seems undervalued at this point as everyone is running to new shiny chip plays.

BillyBobChorton

PEG < 1 is pretty common high growth metric 

IndividualNo7155

MU forward PE is 6.3 and PEG is 0.03. I don’t understand numbers can anyone tell me if it’s a buy

I_luv_CHPY

What's funny is that a high flying tech stock like MU already qualifies to fit inside a value ETF like VTV as its #1 holding. Makes you wonder how low the FWD PE and PEG ratio can go.

VolatilityBox

If we take into account PEG ratios, I think fair value is around $40-50.

FlyingCats17

Calling a company that has a sub 0.2 PEG a value trap is hilarious. Anything can happen with AI, but if you are actually betting against a company with a FWD PE of less than 7 and a PEG of 0.2, you might as well short the entire stock market.

WilliamTeacher

As long as you’re not leveraged to the tits or buying something completely regarded they’re likely to print. Some unusually cheap P/E and PEG Ratios out there in the AI infrastructure space. Some of the high beta non-profitables or P/E’s higher than 50 I’d be cautious.

Stop_The_Rain

MU current PEG ratio.... 0.13.... and all I hear is how overvalued everything is.... joke market!

Double_Suggestion385

They are two of the best value stocks around. MU in particular - fwd PE of 5 and a PEG of 0.03. ROE of 66.64% You can half the expected earnings and still have over 150% upside before you hit a fair value. Nvidia not as cheap - fwd PE of 16 and PEG of 0.34. ROE over 110% though and currently about 50% upside before you hit fair value. What numbers are you looking at to say they aren't cheap?

_hiddenscout

True. but the stocks fundamentals are nearing what I consider GARPy, especially for a company like this. At like 355, the PEG is nearing like 2.5, which is usually more expensive that I like, but there's an argument you can apply a premium to the company. Company has strong ROIC, good margins, and no debt.

Double_Suggestion385

If you can't buy NFLX with a Fwd PE of 19 and a PEG of 0.8, just stick to indexes. Stock has heaps of upside at this price, hopefully it drops further tomorrow so I can scoop some up at bargain prices.

hellario

What chips are 100+ P/E? Unless you're looking back which is irrelevant for anything growth-related. Forward PE and PEG are the relevant metrics. They're much more affected by long-term production and demand than price. How many years you can do sustained business matters much more to the stock value than if you're charging 50% more now and it ends in 18 months.

Jerikolol

0.03 PEG LMAO. Dead stock dead theme, sell this shit and buy WMT (35 fPE) and CostCo (40 fPE). Real american value

Clackamas1

It has a PE of 22, forward PE of 6 and a .13 PEG ratio. Produces the same profit as Apple so yeah...puts.

NoobOnTour

Ahhh yes then it will only have a KGV of around 50 for 25% growth? PEG ratio of 2 which makes it around 50% overvalued. Nice.

_hiddenscout

Oh I don't disagree, but I think looking at the fundamentals here paints a better picture of it being overvalued rather than just looking at that enterprise stuff. I'm just calling out that if a single team or two teams use a tool, it's possible for the company to say it's being used. It doesn't tell you the full story. Using fundamentals tells the same story, but it's actual a piece of data: [https://stockanalysis.com/stocks/fig/statistics/](https://stockanalysis.com/stocks/fig/statistics/) Forward PE is 85, PS is 9, P/FCF is 44 and PEG is 4.7. That 100% tells a story of a stock being overvalued.

valbolt

Your concerns about valuation are valid, but according to [Asignal.io](http://Asignal.io) platform its a BULLISH sign, viewing Apple as a world-class cash machine that justifies its premium. The Bull Case \- Elite Moat & Efficiency: Ecosystem lock-in drives a 47.86% gross margin and a stellar 141.47% Return on Equity (ROE). \- Massive Cash Flow: Printed $101.09 billion in Free Cash Flow, ensuring high earnings quality and aggressive buybacks. \- Strong Momentum: Revenue is up 16.6% YoY, and technicals (bullish MACD, RSI 61.8) confirm a healthy, active uptrend. The Bear Risks \- Expensive Multiples: A trailing P/E of 38.22x and a PEG of 2.53x leave zero room for growth disappointment. \- Net Debtor Status: Holds $84.7B in debt vs. $68.5B in cash. This 0.80x D/E ratio restricts macro models to a cautious Half-Weight allocation. The bottom line is - Apple isn't a bargain but it’s a premier safety net. \*Not financial advice, make your own research 😄