PEG

born_to_pipette

“on sale” In what sense? Certainly not in terms of current or forward earnings, cash flows, PEG, or any other typical valuation measure I’m aware of. We’ve got plenty of room to drop before prices start looking “cheap”, and that’s assuming we aren’t facing real, systemic changes to the global economy that will fundamentally alter how US equities are valued. Buckle up.

Trader0721

TTM PE is a shit metric when a large portion of your index is experiencing the growth expected due to the AI boom. PEG ratio is a little high vs historical but by no means near historical highs.

ashish_py

P/E relative to peers is a decent starting point, but growth stocks really need the PEG ratio in the picture too. A stock trading at 40x earnings looks expensive until you see it growing at 50% annually. For screeners, Finviz covers the basics well, and WallStreetZen has a built-in DCF tool that lets you stress-test your growth assumptions without building a spreadsheet. Saves time when you're running through a lot of names.

Training_Marzipan379

yeah that's trailing PEG from last year's 37% earnings growth, not forward. forward is definitely higher. meta probably is cheaper on a growth adjusted basis you're right. would you flip the two?

BigWarning8696

INTR is another good one and competes directly with NU in Brazil. A little better valuation and PEG than NU but I like, and own, both

i_empathetic

PEG ratio 0.57 is nutty. It is insanely undervalued considering they constantly beat and raise expectations. Margins would have to compress bigly to make this not a killer deal.

i_empathetic

Inference hype is great for AMD too. NVDA gonna be first 10T company. 0.57 PEG ratio on NVDA is nutso. If margins don't fall off a cliff this thing is insanely undervalued.

Beneficial-Age-9293

Peg them!  PEG THEM ALL!

juveyjords

Says financial experts. It has a PEG ratio of 1.44. It is overvalued

Asleep_Emphasis69

the big boy Alt asset managers are trading for like 0.5 PEG ratio which hasn’t been the case since covid times…Oversold $BX $KKR $BAM $APO

Kollv

16.8 forward pe 0.44 PEG U cant be serious ☹️

juveyjords

Check out the PEG ratio. Anything above 1.5 is OVERVALUED

salty0waldo

HII has been on my watchlist since the start of the year, and honestly missed a good buying opportunity post-earnings. The US has made it a point to retool the existing naval fleet, so they should have a solid runway for the next year or so at least. The question is how much of this is priced in? Also, it is usually not a great time to buy defense stocks in the middle of a conflict. It is sorta like buying energy in the middle of a boom. Historically it trades at a 15 multiple and a PEG under 1, currently the forward is 24 with a PEG at 1.7 so much of this is priced in I would assume. I'm probably wrong, but I think if it dips below 380 and the narrative remains unchanged, that might create a nice opportunity to put on a starter position. Or at least that is what I am thinking. Otherwise, a great company with solid management.

juveyjords

No the reason it’s at low PE is because it constantly beat earnings which compresses the PEG ratio and lowers the forward PE if you understood anything of how earnings works lol

Screwyball

If youre gonna use PEG or even PE to value cyclical stocks in an unprecendented supply deficit I can guarantee youre gonna have a bad time.

chaotarroo

Disagree. Micron forward pe still at single digit. PEG is only 0.1. MAG 7 stocks all have 20 to 30+ forward PE Market is still pricing memory stocks as if they are cyclical and controlled by consumer demand rather than a long term boom created by AI expenditure that doesn't seem to be slowing down.

GlobbityGlook

Stock Analysis website is similar with often directly contradictory information within the same section. Particularly the Strong Buy tag often linked to a forecast of declining stock price! (Zack’s too.) On the other hand, you can take a closer look at PEG ratio, price book ratio and other metrics. I haven’t used Merrill’s data for awhile so I don’t really know if it’s any better. I remember it has a chart feature for comparing chart history of different stocks.

OddDescription4523

I'll go ahead and repeat what everyone else says, namely, don't invest in individual stocks, invest in broad index funds, that's the smarter way to go. Now, with that out of the way, here's what I did when I took over from an "automated broker" (literally just me paying whatever company it was a fraction of a percent to buy nothing buy a broad index fund, in this case IVV) and started buying my own stocks. MISTAKE #1: I got a subscription to Motley Fool. As far as I'm concerned, Motley Fool is even worse than listening to Jim Cramer. It is actively out to make money by making you lose money. They tell their subscribers "this is the next big thing! Remember that time in 1993 when we told people to buy something and now it's up 10,000% This could be that too!" and then when the price is pushed up, they sell, or the opposite "Be afraid, this is going to crash!", get people to sell, so they can buy on the cheap. Fortunately, it only took a month or so for me to realize/learn that their advice is shit and they're a complete scam. I switched to subscribing to Seeking Alpha, and I trust its advice MUCH more, to my benefit. If you subscribe, which I think costs $200/year(?), you can get 3 scores for a stock/ETF: an average of the ratings of a wide number of wall street investors, an average of the ratings of Seeking Alpha contributors based on their own analyses, and a score from their proprietary purely quantitative algorithm that takes all human hunches and intuitions out of things. I pretty much only pay attention to the Quant score, but MISTAKE #2 was learning not to \*just\* trust the Quant score. Often, it sees astronomical performance in small, like very small, companies, and has them with a score of like 4.98/5.00, but these are very risky and frequently drop hard, so you have to learn what makes for a reasonably plausible good Quant score vs. a good Quant score that you shouldn't trust. Other than that, I read a lot of the analyses that SA publishes about companies that I'm considering, and - important - use Investopedia to look up any and all words or acronyms I'm not familiar with. I swear, investing is as bad as the military when it comes to having 87 bazillion acronyms, so be ready to learn what P/E, PEG, EPS, etc. mean and what they signify. Beyond that, my main advice is to start small. If your Roth IRAs already have significant funds in them, put/leave most of it in index funds and only give yourself a small portion of your portfolio to learn to pick individual stocks with. Because you almost certainly will lose money before you learn enough that, with luck, you'll start making money. I think I got as low as my OVERALL PORTFOLIO being down somewhere between 25 and 30% because of bad decisions before I had learned enough to start making better investment decisions, managing risk, knowing which sectors of the market are more cyclical vs stable, how I wanted to balance between value and growth stocks, and so on. I've made up all that loss and come well into the black by now, but thank god that I didn't have very much money to invest in those first several years when I was making mistake after mistake. If I'd have as much income to invest then as I have now (I was in grad school), I'd have lost a shitload more money. So, basically, if you're set on making your own individual stock picks, think of the money you invest for the first year or two as tuition in the school of hard knocks as you come to know what you don't know, so that you can then go learn about it. If that sounds unacceptable to you, then just swallow your pride, don't think you can do better than the market, and stick to broad index funds.

vexingparse

I bought into the software slump last week (NOW, HUBS, INTU, TOST, CRM, WDAY). My thinking is that in many cases AI will build on top of existing SaaS products rather than replacing them. It will also need to be trained on non-public data that's locked in existing databases belonging to those SaaS offerings. But this reasoning is not true for all software. Some types of software (such as WIX, ADBE, FIG) are in direct competition with AI for a large share of users and a lot of AI training data is publicly available. It's absolutely possible that you are right that many users will prefer a visual site builder to AI. But many others will not. That can't be good for Wix's growth prospects unless they manage to pivot to something that benefits from AI. On the flip side, Wix is not expensive. Price/sales is just 2.62 according to Yahoo. PEG is 0.5. They clearly have a capable team. So who knows. Maybe it's worth a bet. But I think it's a bet on the people rather than the product. It's a bet on a turnaround story.

grackychan

I am seeing PEG for LITE at 1.75 , where do you get 0.45 ?

_hiddenscout

If you are looking like true, EXLS still remains a really great company at a cheap price. For more GARPy levels, I think TOST is great. Trailing numbers are high, but PEG is responsible because they are actually profitable now and growing FCF. Last two quarters FCF growth was 32% and 57%. Insider ownership is like 18% and basically like no debt, technically 20M.

Mobile-Bar7732

If they can bring back revenue growth from up to 2024 I would disagree. PEG ratio 2.03 which anything under 2 for a growth stock is buy.

_hiddenscout

I do. That's where LLM's usually help of recent. Basically my process is to screen, so I use the PEG P/FCF, but also look at things like quick ratio, revenue growth, eps growth and ROIC. I like to look at these things because I think they are part of what make a great company. That's the beauty of investing, you can define what characteristics you want when looking. So screener cuts down my list to like 100 -150 companies to research. Basically from there, you pick a company to research. I then like to look at overall sales growth and then start looking at earnings presentations and reading earnings transcripts. I like to look at the last two. I then like to get a DCF value to get an idea of what my margin of safety is with a bear, base, and bull case. I do a bit more, but that's like the jumping off point of how I start research. I'm a GARPy investor, growth at responsible price, which means i'm for companies that are under to fairly valued with good growth.

_hiddenscout

So like BSX [https://finviz.com/quote.ashx?t=BSX&p=d](https://finviz.com/quote.ashx?t=BSX&p=d) [https://stockanalysis.com/stocks/bsx/statistics/](https://stockanalysis.com/stocks/bsx/statistics/) PEG is under 2 and P/FCF is under 30 with a forward PE of like 18. You can argue that BSX gets a little premium since it's a great company. I like to check both stock analysis and finviz, since numbers can be different, but both are showing the PEG under 2 and P/FCF under 30. I'd argue that puts in a fair to good price for a great company. It's not like crazy under valued, but if you are looking for a long time hold and think the news around the slowdown being a bit overblown, I think it's a solid buy around here. These would be for long term holds, with going back to the idea that Buffet said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

_hiddenscout

For me, I like to look at PEG and P/FCF as main metrics. Try to buy when PEG is under 2 and P/FCF is under 25-30 range.

Glittering_Water3645

In your opinion maybe. As I mentioned; I factor in PEG (forward PE relative to EPS growth), a healthy balance sheet and solid fundamentals going forward. If you call that gambling then sure, I´m a gambler. What´s you own strategy and portfolio looking like?

Glittering_Water3645

Software is 30% down from their highs. That´s not a small correction. You also have meta, microsoft, amazon, NU holdings, mercadolibre, uber and so on down more than 20% from their highs but with solid PEG (forward PE relative to EPS growth), balance sheets and fundamentals.

_hiddenscout

That's the trailing PE. If you look at the forward it's much lower at 22. PEG is also at 1.09, so they are still seeing high EPS growth rates and the P/FCF is 25 which isn't the cheapest, but nothing too crazy. While trailing PE is high, you can look at the historical average of what people pay for the company, it's much cheaper.

Original_Mango9316

PEG ratio of 0.58, so seems slightly undervalued based on projected growth.

salty0waldo

Totally agree. At least with most of the semi's we have earnings, so we have a PE and PEG lol. I get stuck sometimes trying to piece out the SBC with these adjusted EPS figures.

Original_Mango9316

CRDO actually has a PEG ratio <0.5 and P/E foward of 26. It's cheap considering the growth.

tired_ani

Does anybody own SNPS ? I have traded in and out a couple of times but this time I am looking to start a position for the long term. Overall I am very constructive on the EDA space and their moat with TSMC but sometimes get the sense that their management is not elite and may struggle with the Ansys integration. They are still expensive on a PE and PEG basis but the numbers are all messed up from the big acquisition of ANSYS.

Pin-Last

Me too, Netflix 2 weeks ago and started a huge saas pie that MSFT is half of… no choice imo when what 60 days ago was the best company on earth is now deserves a market PE and PEG of what? Like .85? .8?

Lonely_Corgi_728

PEG is 0.49 now and next year is 1.45 suggests Earnings is growing than stock price. Also I think a potential short squeeze is at play, sending stocks higher. 800-900+ IMO LITE has 3 forces at play, value, squeeze and momentum, working together.

EvolvingDior

Because NVDA always recovers. It's PEG is under 0.8.

juveyjords

You do realize nvidia is intrinsically undervalued and can go up another 50-100%? It has very low fwd PE and a low PEG. Of course, you idiots don’t understand what earnings are. You just gamble

EvolvingDior

NVDA has a 0.71 PEG and its stock price is declining. That's because no one believes that the AI hype train is feasible. We are not adding enough power production or transmission capability to support that growth.

EvolvingDior

>As of early 2026, Tesla (TSLA) has a high PEG (Price/Earnings-to-Growth) ratio, often exceeding 5.0 to 12.0 depending on the source, signaling an expensive valuation relative to its immediate earnings growth, though sometimes justified by market optimism regarding AI and robotaxi initiatives. A [PEG ratio](https://www.google.com/search?q=PEG+ratio&sca_esv=db2351f46a6aa745&sxsrf=ANbL-n6AYvqodH3tT354i1wZQZo8208teQ%3A1772134315807&ei=q5-gacH4MNyh0PEP18S38Qc&biw=2324&bih=1045&ved=2ahUKEwiCrs7l8veSAxXGFjQIHd3jM6EQgK4QegQIARAB&uact=5&oq=TSLA+PEG&gs_lp=Egxnd3Mtd2l6LXNlcnAiCFRTTEEgUEVHMgsQABiABBiRAhiKBTIGEAAYBxgeMgsQABiABBiRAhiKBTIGEAAYBxgeMgYQABgHGB4yBhAAGAcYHjIGEAAYBxgeMgQQABgeMgsQABiABBiGAxiKBTILEAAYgAQYhgMYigVIgxhQhBJY_BRwAngBkAEAmAFdoAGNAaoBATK4AQPIAQD4AQGYAgSgApoBwgIKEAAYsAMY1gQYR5gDAIgGAZAGCJIHATSgB-EMsgcBMrgHlQHCBwMwLjTIBweACAA&sclient=gws-wiz-serp&mstk=AUtExfD1dUPRfFF-Z7QcA-3fdMRI-aMOlck_cENFskPlcLMnzOa_0jL1nbfc1v4j2R5NdbjKbciyj_nCktrJHD7eZeFNjQLhfYym_Vw2lxYUCS40T7XGGXxU3Z9itGHxZnYagakWWYAqEtJrQaqudii0pPFs1JaHRSQYHEvCxGgfFABTYXcxQr24MBmf63imSLgFMggj3JzDlH_ZfxmG1GnzBM7YfaKiodJGIxWa-h3_jggQL4Ecww49KhZelUpmfbTn0-B7U752lHachiHMig5yr-pT&csui=3) over 1 is considered overvalued by traditional metrics.

Holokahiki786

What do your metrics for success tell you? For me as long as FCFM, PEG, RDCF, & ROIC are favorable it’s OK to buy lots of shares and options. When their growth rates start to fall and indicate it’s leveling off then it’s time to reduce your exposure.

Bontus

PEG is past growth

Bontus

PEG of 0,5 lol how is that a bad price

robotpoet

Www.alphaunderpressure.com could have saved you this position rating your strategy a 2.97 out of 5: Hims & Hers Health, Inc. (HIMS) presents a mixed fundamental profile for a bullish short-term trade. The company shows strong institutional ownership and attractive valuation metrics (P/S 1.60, PEG 0.74), supporting upside potential. However, severe recent price underperformance (-49.18% month, -56.71% quarter) and high short interest (37.14%) indicate significant market skepticism and potential liquidity risks. Financial filings reveal reliance on limited pharmacy fulfillment channels that constrain growth, and risk disclosures highlight material uncertainties. Cash flow quality and earnings trends are not clearly improving, and the company’s 2026 outlook is soft despite Q4 EPS beats, tempering near-term catalyst clarity. Insider selling and share repurchases suggest mixed governance signals. Overall, the setup is actionable but requires close monitoring of upcoming earnings and operational execution to confirm thesis validity.

Lovevas

Right now based on yahoo finance, MSFT forward PE is 33 and PEG is 2.3, and GOOG is 24 and 1.7 So MSFT is still more expensive than Google now, not to mention when Google was $100....

EvolvingDior

You are buying a retailer with an insane PE & PEG.

_hiddenscout

That's why I've stuck to my method of trying to get things with a PEG under 2 lol. Not perfect, but has kept me generally buying at good levels. BMI is great, just not a fan of the valuation. Also hoping that some other names have a pull back soon, would love to buy FSS, MWA, CTS.

IBangTokyoWife

SaaS names I'm interested in: CRM NOW FICO BKNG Started a serious position in BKNG today. Revenue 5y CAGR is 26%. Diluted EPS 5y CAGR is 22%. 25 PE provides a reasonable safety net at that level of growth. The PEG is down to .91. Rising margins, wide moat with a positive trend. Seems like a steal. Probably not the bottom but easy buy at these levels for me

Judgementday209

What is their PEG, any one offs in that revenue and margin beat? A 57 PE doesnt scream value to me.

zeykhan87

Two issues first Open ai got the funding without even doing an IPO which it could easily do, so it has the money Second 625-280 is huge number and still keeps Microsoft at almost a 1PEG rario

EvolvingDior

Nope. The underlying has been completely propped up by WSB retards buying options against it for over a year now. It's PE/PEG hasn't been sane in quite some time.

brian-augustin

I use finviz for research. Focus on PEG sometimes EPS and 21 EMA on Day timeframe. I don't like ETFs cause there's lots of bad picks in those ETFs. Tech gave me 15% YTD returns this year, energy got me 3% so far.

Panthera__Tigris

88 forward P/E and PEG ratio of 3.54 ???? [https://finance.yahoo.com/quote/CRWD/key-statistics/](https://finance.yahoo.com/quote/CRWD/key-statistics/) 200+ comments and not a single one about valuation. Are those numbers wrong?

darth_salmon

I mean close to $2k a share is not insane when you consider the market is still pricing it as a cyclical AI infrastructure play. They’re backed up with orders until 2028 and they’re working on shifting revenue towards LTAs. The cyclicality narrative is about to be dead and the forward PE is sitting at like 7-8 with a PEG of 0.04. With a PEG that low in a sector that has growing demand for its product, so much in fact that there is a 2-3 year long shortage? LTAs will force that PEG ratio to at least .5-.7 because the market will overshoot its value and this is how you’ll get that $1200-2000+ share price

Lonely_Corgi_728

Lumentum $LITE is cheap IMO. 268% EPS growth this year, 85% expected next year. PEG ratio of 0.45 suggests stock is cheap relative to its growth rate. $LITE optical components are driven by AI/Cloud data centers.

ProfileBest2034

Nonsense. Walmarts PEG ratio is 3.4 which is insanely overvalued even factoring in its growth.

Donechrome

GAAP tangible book value = $4B. Market cap = $300B. Yeah, you read that right. That massive profit? Only because the tax rate is 2% vs 20% for SaaS. Why? Multi-year deferred losses + R&D credits. Once that’s gone… profit falls, and P/E from 100+ just climbs higher. Oh, and don’t ignore the PEG ratio — it’s screaming caution.

MitchCurry

Averages, plural. Not singular. P/S and P/GP is included and those are fair comparisons. Also, PEG is extremely subjective. Whose EPS growth rate are you using? Your own? What's your track record? Or are you using analyst data? Is the analyst excessively bullish to curry favor with management? What's their track record? Koyfin has HOOD PEG at 1.5. Zacks is at 2.9.

Stunning-Stop-8128

Well they just turned profitable over that period so it's an unfair comparison. Its PEG is 1.25

Bosto2025

The “AI CapEx is out of control” argument is starting to run out of steam and we will likely see the same pundits on CNBC saying the hyperscalers are underspending on AI infrastructure. AI is not a fad or a small piece of the technology stack. It is the future of all business, all personal interaction with our environment, medicine, health, education, home life, etc. It’s like debating whether railroads should build tracks just as the steam engine and refrigerated boxcars were invented. Having said that, some are more poised than others to run on in 2026 and 2027. So I tend to still use traditional valuation metrics - such as EPS growth, PE ratio, Forward PE ration, PEG ratio, moat, etc. So for now, I am holding pat on my Mag 7 holdings - as they make up over half of my portfolio. If I were to add now, I would probably add more NVDA, Meta, AMZN and MSFT.

RMiers09

Honestly, it may be better to use PEG ratio instead of PE. This puts the PE into context with earnings growth. Higher growth in earnings will justify a higher PE. I think your mentality is right tho. Don't chase premium stupidly. Also, if its helpful, [this is a newsletter](https://thetathrottle.beehiiv.com/) that I like that has to do with selling options. It might be worth taking a look. Whatever you do tho, good luck.

_hiddenscout

Do what you think is best. It’s your money. Only about 45% of the business is from data center and the US is probably going to see another factory boom this year due to the new tax laws with write offs. While it’s 60x, the PEG is still relatively low because of the EPS growth. Last quarter, it was 26% QoQ and over 100% YoY. Even during the deepseek moment, it tanked like 35% over the course over a month or so. I think the SPY addition could also give a bit more of a floor.

CraneEternal

Essentially everyone posting about PE, PEG ratio, revenue growth, debt to equity and so forth is correct but you need to maintain common sense on company to public guidance. Take GOOGs recent earnings report where they were perfect in aspects but even so we saw their stock price tank nearly immediately even with positive metrics. Why? Their massive CAPEX into AI infrastructure shocked investors. Could the room so to say be read in this situation, very hard to tell. Can Alphabet afford their investments, certainly but the public shock was an invisible force that left many holding the bag.

zbern

It's a personal thing and I'll get past it one day lol. You are right especially the current PEG and forward PEG make this stock so attractive.

_hiddenscout

Kind of funny, but IMAX is an interesting stock. Valuation isn't bad in terms of looking at the PEG and forward PE. It's beating the SPY over the 1Y and 5Y. They actually has good gross margins and have been improving: [https://quickfs.net/company/IMAX:US](https://quickfs.net/company/IMAX:US) Pretty low float for a company too, with 43M available shares and like 19% insider ownership. Always find it interesting the places you can find alpha in the market. Also wonder with summer coming up and the new Nolan movie, if this thing has some legs to run in the short term. Here's the latest investor presentation: [https://investors.imax.com/static-files/740895ab-4110-4ac2-9a7d-b070cea0414e](https://investors.imax.com/static-files/740895ab-4110-4ac2-9a7d-b070cea0414e)

Rabitai_Trades

I mostly agree the bubble framing feels overstated, but I think it’s worth separating growth from valuation support. NVDA forward multiples look less extreme if you assume sustained data center demand, but the market is also pricing in high margins and continued capex intensity from customers. A small demand pause or pricing pressure can matter a lot. PLTR. The growth rates are real, but the debate is durability/quality—how much is repeatable software revenue vs. project-heavy work, and how sticky are contracts if budgets tighten? Burry/MBS analogy: Different mechanics, leverage/opacity aren’t comparable, but sentiment can still overshoot. What metric are you using to call NVDA shockingly reasonable (FCF yield, PEG, forward P/E, something else)?

TrickyBar9580

SNDK FWD PE = 8 , FED PEG = 0.10, FWD EPS YoY = 404%… Stupidly undervalued

TrickyBar9580

SNDK FWD PE = 8 , FED PEG = 0.10, FWD EPS YoY = 404%… Stupidly undervalued

ShowerFriendly9059

MU is 65% of my portfolio. It’s still trading cheap as FUCK (PEG < 1.0, forward p/e around 10x) too

BigWarning8696

Very true, its tough to put a fair value on a stock that grows so quickly. I just make the assumption that the historic price range kind of tells you fair market value and I like to buy below its historic PEG. RDDT has forward PEG (non-GAAP) of 0.50 which I find ridiculously low. I understand the frustration

Vast_Cricket

Its social media site is not often a credible source. Many similar sites eventually turn red and sold. Looking at high p/e ratio of close to 81. Still quite high in my opinion. Looking at PEG ratio of 3.22 hints its growth rate in relation to P/E is still questionable. My thinking an entry point can be even lower. I sold my earlier Rddt stocks and have to pay more than before. Whether it will be 120, 100 it is hard to say.

LegitimateShameHands

Reddit has 10% of it‘s market cap in cash while growing Revenue at 70% and zero Debt. PEG ratio quickly approaching 0,3-0,4. If it continues to drop at this pace I‘m sure someone will step in and buy the company.

TrickyBar9580

Sandisk has a PEG ratio of 0.1. Theoretically, the intrinsic value of Sandisk today is actually about 10 times higher than where it is at right now. Based on DCF, it is worth $2000. Even conservative $2000 is an almost 4x appreciation in value. Micron is worth $1500+.

Panthera__Tigris

Clear rotation out of tech stocks into other sectors and foreign markets. Foreign markets I can understand because they are cheap considering growth. But the other US sectors are just literal SHIT. Walmart PEG ratio is 4.7 compared to 0.7 for Nvidia. Who the fuck is rotating into that crap? Great opportunity to buy tech stocks, in my opinion. I bought MSFT, AMZN. Already had GOOG. Missed the dip on NVDA,

FarrisAT

For the first time ever, S&P Industrials Sector has a higher PE ratio than S&P IT Sector. Let’s not even talk about their respective revenue growth and PEG ratios… Industrials are more valuable to investors than monopoly tech firms.

BuffersAndBeta

There are issues with PEG, but more generally speaking DCF is the ONLY valuation analysis possible, anything else is a proxy for DCF (for instance, early stage companies dont have positive cash flow). PEG only works for mature companies that have positive GAAP earnings over long periods of time.

DynamicRoman

You are going to be a multi-millionaire next year. SentinelOne is now 60% of my portfolio. One of the biggest opportunities I have ever seen in the market. I bought META at 90 in 2022, but I would say S1 is a better buy in comparison. I work as a Director in the Cybersecurity industry and I can guarantee you that SentinelOne products are technically better than Crowdstrike and much cheaper. S1 has PEG of 0.4 S1 has P/S of 4, while Crowdstrike has P/S of 25 S1 has recebue growth of 25% S1 has expected EPS growth of 110% S1 has 0 debt and 700M in the bank Also, S1 has huge customers like McDonalds, Amazon, Tesla and SpaceX. The only caveat I see with this company is the amount of pre planned RSU selling by the CEO. This will reach $30 in 2027, if not sooner. There is also the possibility that they are bought by Google at $30.

Quej

No one knows. They're profitable, they're still growing, the numbers are good YoY and QoQ, PEG of .6, but it was massively overvalued at $500 and there are legit fears of AI eating their lunch. But it's $115 now and the numbers are still good and growing, so it looks good to me, but there's a clear risk.

Melodic-Method1926

PEG < 1, stock down 42% in a month. Its really well below its 200DMA (at ~$187) and may retrace to there if it has bottomed out here, which would be a 30%ish move up from here. Load up RDTL if you’re confident lol

MandingoPants

But what if you look at PEG ratio instead of DCF? 

Glittering_Water3645

BKNG (booking holding) is starting to look tempting here. Forward PE: 16 Estimated EPS growth: 15-20% (PEG below 1)

SteveTi22

Looks good. Forward P/E of 19.4, PEG ratio < 1 and 23% yoy growth. Market expectations are predicting profitability this year and they regularly hit expectations, which could mean S&P500 inclusion. They also announced a stock buy back offsetting SBC. The current valuation has been beaten down on the idea that everyone is going to build and maintain their own tools rather than buy them. I've cut my fingers catching this falling knife but think in 2 quarters after more results with 20+% yoy growth the tales of Atlassian's demise will be seen as greatly exaggerated.

PotadoLoveGun

PEG ratio is about .6 now. Its undervalued for its growth rate and consensus eps for 2026. They will continue to beat estimates so its even lower than that really. Fair value PEG of 1 would be about 240

MagnesiumKitten

rat skin: You literally always change the goal posts mr. bot. I will never read more than the first 10 words you type in my responses anymore so just save yourself the trouble and don't reply to me ever again Wow, just don't burst into tears now. I haven't got a handkerchief handy. Uh, Maybe you just don't belong here. The only education people get is seeing how you misuse PEG Ratios when you're not having a faulty memory about goal posts

Turbosuit

If you look at the Capex table, the money is shifting from chips only to power, cooling, and custom silicon. Here are the best bets for each sector, graded by entry potential and fundamentals. From Gemini pro. I'd like to hear opinions from Reddit about how we see this cup overflow and other possible overlooked smaller or mid caps that will benefit from this shift of capex. 1. The Power & Nuclear Layer ($CEG) Ticker: $CEG (Constellation Energy) Grade: A Why: They are the nucleus of the AI energy play. They recently secured a massive 20-year deal with Microsoft. The Alpha: Currently trading at a ~28 P/E, which is actually below its 12-month average. While most "AI stocks" are at all-time highs, $CEG is a value-entry into the most critical bottleneck: clean power. 2. The Thermal/Cooling Layer ($VRT) Ticker: $VRT (Vertiv) Grade: A+ Why: You can't run $610B worth of Blackwell chips without liquid cooling—they will literally melt. Vertiv is the undisputed king of high-density cooling. The Alpha: Forward P/E is sitting around 36x. They carry a Zacks #2 (Buy) rank and just reported a massive backlog that extends into 2027. This is the "Nvidia of infrastructure." 3. The Networking & Custom Silicon Layer ($AVGO, $ANET) Ticker: $AVGO (Broadcom) Grade: A Why: Big Tech is desperate to escape the "Nvidia Tax." $AVGO is the partner for Google (TPU) and Meta (MTIA) custom chips. The Alpha: Currently trading at a 0.93 PEG ratio, meaning you are getting high growth at a discount compared to the sector. It's one of the few plays where EPS is growing faster than the stock price. Ticker: $ANET (Arista Networks) Grade: A- Why: Hyperscalers are standardizing on Arista for high-speed Ethernet to connect their GPU clusters. The Alpha: They just reported 27% YoY revenue growth. With a P/E around 49, it's priced for growth, but they are the "plumbing" that makes the $610B in hardware actually work. 4. The Physical Build-out Layer ($EME) Ticker: $EME (EMCOR) Grade: B+ Why: The "shovels" play. They do the mechanical/electrical engineering for massive data center shells. The Alpha: Trading at a ~30 P/E with a massive 12-month run-up (1-year low was $320, now near $760). It’s a slightly "expensive" industrial, but their earnings revisions are trending up as more $100B+ data centers break ground.

Turbosuit

If you look at the Capex table, the money is shifting from chips only to power, cooling, and custom silicon. Here are the best bets for each sector, graded by entry potential and fundamentals. From Gemini pro. I'd like to hear opinions from Reddit about how we see this cup overflow and other possible overlooked smaller or mid caps that will benefit from this shift of capex. 1. The Power & Nuclear Layer ($CEG) Ticker: $CEG (Constellation Energy) Grade: A Why: They are the nucleus of the AI energy play. They recently secured a massive 20-year deal with Microsoft. The Alpha: Currently trading at a ~28 P/E, which is actually below its 12-month average. While most "AI stocks" are at all-time highs, $CEG is a value-entry into the most critical bottleneck: clean power. 2. The Thermal/Cooling Layer ($VRT) Ticker: $VRT (Vertiv) Grade: A+ Why: You can't run $610B worth of Blackwell chips without liquid cooling—they will literally melt. Vertiv is the undisputed king of high-density cooling. The Alpha: Forward P/E is sitting around 36x. They carry a Zacks #2 (Buy) rank and just reported a massive backlog that extends into 2027. This is the "Nvidia of infrastructure." 3. The Networking & Custom Silicon Layer ($AVGO, $ANET) Ticker: $AVGO (Broadcom) Grade: A Why: Big Tech is desperate to escape the "Nvidia Tax." $AVGO is the partner for Google (TPU) and Meta (MTIA) custom chips. The Alpha: Currently trading at a 0.93 PEG ratio, meaning you are getting high growth at a discount compared to the sector. It's one of the few plays where EPS is growing faster than the stock price. Ticker: $ANET (Arista Networks) Grade: A- Why: Hyperscalers are standardizing on Arista for high-speed Ethernet to connect their GPU clusters. The Alpha: They just reported 27% YoY revenue growth. With a P/E around 49, it's priced for growth, but they are the "plumbing" that makes the $610B in hardware actually work. 4. The Physical Build-out Layer ($EME) Ticker: $EME (EMCOR) Grade: B+ Why: The "shovels" play. They do the mechanical/electrical engineering for massive data center shells. The Alpha: Trading at a ~30 P/E with a massive 12-month run-up (1-year low was $320, now near $760). It’s a slightly "expensive" industrial, but their earnings revisions are trending up as more $100B+ data centers break ground.

a_shbli

Actually these ai tools are all over the place and wrong, the PEG is even better, with today PE about 55 and the EPS expected to grow at about 130-170% this year from $2.6 to $6-$7 more than double The PEG comes to about 0.3 to 0.4 in my calculations. Don’t ask Ai because they may take analysts which currently are extremely over dated with a forward earning per share close to $3-$4 range, extremely wrong for RDDT.

I_Study_The_Patterns

PEG is at like 0.5 now. Two different analysts had it between 0.6-1 when the stock was 180. I asked ChatGPT to help me calculate that so take it with a grain of salt.

DeathStar_81

Stock valuation is forward looking. P/E is a somewhat flawed metric, especially when dealing with high growth companies. PEG or (P/E / growth rate) is a far better metric to look at. Yes, growth rate isn't guaranteed, but earrings jumped from $.36 to $1.24 and revenue jumped by 70%. Looking at just the P/E is what gets you buying into value traps. Stocks with low P/E multiples but flat to declining forward revenue.

_hiddenscout

Basically. Like one thing people get wrong is that stocks don't trade off fundamentals. Stocks trade off various things, like some TA stuff like RSI and other patterns as well as things like macro events and news. Plus add in fear or rumors or anything else. It's why day trade is like impossible. It's also what catches people up, since they think the market is suppose to trade off fundamentals. Fundamentals is something that investors use. When you take the mindset of investing, you think about buying a part of a company. There are some things that make a company more attractive to investors, like growing margins, ROIC, growing revenue, etc. The price of a stock gives you fundamentals of that stock. Like I'm a GARPy investor. It's growth at a responsible price. Basically all investments boil down to the idea of you are looking at a companies future free cash flow. That is what lets a company buyback stock, give dividends, etc. So when looking at fundamentals, I like using the PEG ratio. It's what peter lynch used. PEG looks at both P/E and EPS. So something can have a high PE, but can also be growing their EPS a ton, which makes the company look cheaper. Since in some cases, price goes higher just from multiple expansion, meaning just investors are paying more for the stock. Usually in the long term, things revert back to the mean. Like Ben Graham, who is a famous value investor who taught Buffet, refers to the market this way: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” So that's kind of a huge risk for some investors, is over paying for something. It eats into your possible returns. It's also why investing is really hard, because you can do all this research and still be wrong or the market will disagree with you.

_hiddenscout

New name popped up on the screener this morning, MITK. Looking into the company now, but fundamentals don't look too terrible [https://finviz.com/quote.ashx?t=MITK](https://finviz.com/quote.ashx?t=MITK) PEG is 1.32 and Forward PE is 10. Having a massive day after smashing earning. Here's what they do >Mitek Systems, Inc. provides digital identity verification and fraud prevention solutions worldwide. The company offers Mobile Deposit, a mobile remote deposit capture solution for retail financial institutions, brokerages, and prepaid card providers; Check Fraud Defender, a cloud-hosted fraud mitigation service; Mitek Verified Identity Platform, an end-to-end identity verification solution; Mobile Verify, an omnichannel identity document verification engine; MiSnap, a software development kit that replaces manual image capture with auto-capture; CheckReader, which enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application; and Check Intelligence, a check fraud solution. It also provides IDLive Face, a passive face liveness detection; IDLive Doc, a document liveness detection; and IDLive Voice, an anti-spoofing voice liveness. The company was incorporated in 1986 and is based in San Diego, California. Here's the latest presentation from the ER [https://assets.thevendorgroup.com/site/97b87faa-91f0-4edd-a3ac-ecbbcfffe370/2026/02/05/6984ff44db0b0b0b90b7d8f2/Mitek%20Systems%20(MITK)%20-%20Investor%20Presentation%20-%20F1Q26.pdf](https://assets.thevendorgroup.com/site/97b87faa-91f0-4edd-a3ac-ecbbcfffe370/2026/02/05/6984ff44db0b0b0b90b7d8f2/Mitek%20Systems%20(MITK)%20-%20Investor%20Presentation%20-%20F1Q26.pdf) Kind of cool they actually call out the thesis on why you should invest in them on slide 2. >The problem >The market is entering a new phase driven by AI-generated synthetic fraud, and is outpacing legacy controls, creating rising losses and operational burden. Enterprises need accurate, multi-signal decisioning across onboarding, authentication, and transaction risk - not fragmented point solutions from multiple vendors. Kind of an interesting play on deepfakes and security.

MagnesiumKitten

quote me! I know you have a good track record for accuracy honey And oh yes, Microsoft's PEG Ratio Range Over the Past 10 Years is excellent The Peg Ratio is great for the Microsoft Chart And pretty mediocre if computer it to the others in the Software sector But I'm sure that out of the 87 Valuation Metrics you us that it'll massively change the numbers. oh Microsoft is a fantastic buy for the price, but it's a Hold not a Buy right now And some of that might be due to the Dip after Veterans Day around November 1th and the loss in Momentum around June the 30h, or was it the 34th of June Like I said, you need to read more carefully and stop cherry picking Doctor Troll! You amuse me, O Trollenberg Terror!

HughManatee

PEG is under 2

stupidber

I'll PEG you

Purple_Bearkat

AMZN certainly gave me a PEG today.

Tay_Tay86

MSFT punished the hardest for capex and 39% cloud growth (the highest), yet spending the least. Makes sense to sell it back to a PEG of 1.0 am i right wall street? Fucking regards.

ratskin69

lol yea I remember you saying they had a good PEG ratio and it was buy at these prices, keep changing the goal posts though

MagnesiumKitten

You're just Trolling because you don't want to engage with the the\_Q\_spice and me, cept with insults about his PE and PEG. And well in my experience, you're pretty out there with your eccentricities with both. have a nice day squeaks and enjoy your Rolls-Royce stock in three weeks as it looks 3% better

MagnesiumKitten

the\_Q\_spice: UPS the message right above yours maybe you have reading problems you bitched about his PE and PEG Rations and said is that actually a deal?

tachyonvelocity

Buy ZBRA for the freight derivative recovery, it sells products to track warehouse goods. Cheaper than shitty UPS and 1.02 PEG

sbuy210

Does it look overvalued here on PEG 2.35 basis?

TrickyBar9580

Do not rely on analyst price targets for anything, it's the biggest lie Rule #1, only pick stocks with PEG ratio under 1 when you are starting