PEG

Creative-Cranberry47

ROOT is the most derisked 100X+  here's why: ROOT is significantly undervalued with a forward PE in the 4’s & a forward PEG less than .1. If ROOT 10X today, it would still be trading cheaper than its peers who trade at 1-3+ PEG ROOT is projected to do a billion+ in NI by 2029 end. at 6B rev & 1.5billion NI at a 40X multiple, that would put ROOT at a 60B mcap or $4000 PPS(45x). discount that to today’s value and that puts the current value at $2034+ here's a quick elevator pitch: \-all 50 states by 2026 end. currently in 35 now \-Onboarding of embedded partners that has yet to be implemented technologically with over 20 major partners in the early stages including CVNA, Toyota, GSHD, Experian, Hyundai, First connect, etc. Should see growth from these partners later in the year going into 2026 \- New major partners that have yet to be announced that are larger than CVNA \- Agressive onboarding of subagencies since public launch in Q4 with now over 7k+ subagency partners and soon half of the agency market in a few yrs. Growth will be exponential on this part of the equation as the qts go along, with expectations of it adding billions in rev growth annually over the long run \- economy of scale kicking in as time goes on with a 75% CR long term due to ROOT's ai tech stack efficiency making them 2X more profit efficient than their legacy counterparts \-New products that would double rev growth due to cross-sell, increasing stickiness by 27% & customer pool by 33% due to bundling Buying ROOT is like buying PGR at 5 cents, a 5000X+ return except ROOT will grow exponentially faster due to AI, automation & the internet. ROOT to 2034+ 

Creative-Cranberry47

prefer ROOT since its in P&C and not in health insurance with regulatory caps.ROOT is the most derisked 100X+  here's why: ROOT is significantly undervalued with a forward PE in the 4’s & a forward PEG less than .1. If ROOT 10X today, it would still be trading cheaper than its peers who trade at 1-3+ PEG ROOT is projected to do a billion+ in NI by 2029 end. at 6B rev & 1.5billion NI at a 40X multiple, that would put ROOT at a 60B mcap or $4000 PPS(45x). discount that to today’s value and that puts the current value at $2034+ here's a quick elevator pitch: \-all 50 states by 2026 end. currently in 35 now \-Onboarding of embedded partners that has yet to be implemented technologically with over 20 major partners in the early stages including CVNA, Toyota, GSHD, Experian, Hyundai, First connect, etc. Should see growth from these partners later in the year going into 2026 \- New major partners that have yet to be announced that are larger than CVNA \- Agressive onboarding of subagencies since public launch in Q4 with now over 7k+ subagency partners and soon half of the agency market in a few yrs. Growth will be exponential on this part of the equation as the qts go along, with expectations of it adding billions in rev growth annually over the long run \- economy of scale kicking in as time goes on with a 75% CR long term due to ROOT's ai tech stack efficiency making them 2X more profit efficient than their legacy counterparts \-New products that would double rev growth due to cross-sell, increasing stickiness by 27% & customer pool by 33% due to bundling Buying ROOT is like buying PGR at 5 cents, a 5000X+ return except ROOT will grow exponentially faster due to AI, automation & the internet. ROOT to 2034+ 

Creative-Cranberry47

UNH trades at a forward PEG of 3.35. its hardly cheap if you consider it in comparison to ROOT. ROOT has a forward PE in the 4's and a forward PEG at .1. ROOT could 10X today and still be cheaper than UNH. Also, ROOT operates in P&C insurance which doesn't have LR restrictions like health insurance. health insurance caps MLR at 80%. in absolute profit one ROOT policy could equal multiple UNH policies as a result of better potential margins. ROOT's tech stack will ultimately allow ROOT to have a 75% CR in the long term. despite ROOT beating legacy insurers on key metrics all around, it still only trades at a 1.4B mcap. much better bet IMO

Hour-End-4105

how about PEG my guy? (hint: its even worse)

FatFireCat

Momentum, PEG, Net Profit Margin Growth, FCF Growth, $ROICTTM > $WACCTTM. I don’t like PE when it comes to growth stocks.

TurnipNo9566

i like CPRT 5Y sales growth: 80% 5Y EPS growth: 90% ROE: 22–24% Debt/equity: 0 PE: 32 (industry average is 41) PEG: 1.9 i’m also liking LRN (fits in the same criteria i use for a good business) and also seems fairly-undervalued to me and to a lesser extent i’m looking at DGII

_hiddenscout

I always call it out, it's a small cap name, but I think $CLMB is super interesting and always trades at a good valuation. Their acquisitions are really accelerating growth, but they are like middlemen that help smaller SaaS companies with sales. You get some cyber security exposure from it. [https://stockanalysis.com/stocks/clmb/](https://stockanalysis.com/stocks/clmb/) Trailing PE is 26, Forward is 22. PS is less than one. PEG is 1.85 Company has a float of 3.9M shares with 6% insider ownership. HIgh ROIC and has like no debt. Last quarter the revenue growth YoY was 73%

Big-block427

We’d love to know by what metrics, technical, fundamental, or maybe their PEG ratio that led you to this conclusion. Or maybe you just hate stocks that go up, and are making money for shareholders?

geecen

It’s called PEG (price to earnings growth). It is usually expressed as rhe p/e as a multiple of rhe growth, but amounts to the same thing you’re saying. It is one measure often used to asses compqnies, with a PEG of 1 being seen as fair. You should be able to get the data for it going back a while.  As with every specific measure it tells you the story from one angle- you need to use as many tools as you have and different tools for different kinds of companies/ stages in a Company’s life cycle.

NUSWannabeSWE

Oh great they added IBKR instead of HOOD into SP500 Looks like HOOD is nothing but a meme stock with 50%YOY revenue growth, 500% EPS diluted growth and PEG of 0.1🤡

Creative-Cranberry47

UNH has a forward PEG of 3.35, 34X ROOT. UNH isn't cheap. ROOT is.

Creative-Cranberry47

other insurance companies are losing customers, and are not growing. they trade at 1-3PEG values. ROOT has a forward PEG of .1. if you really wanted to compare valuation to valuation then ROOT should trade 10-30X from here for tick for tack on forward PEG values

Creative-Cranberry47

ROOT has a forward PE in the 4's, and PEG at .1. if it 10X today, it would still be cheaper than its peers that trade at 1-3 forward PEG's. its significantly undervalued today.

Creative-Cranberry47

you do know that institutions have been accumulating at low and at even higher prices? you can make false claims but who exactly is doing the dumping? forward PEG is at .1. it could 10X and still be trading cheaper than peers.

Creative-Cranberry47

how is a forward PE in the 4's and a forward PEG of .1 not interesting? it could 10X today and still be trading cheaper than peers that trade at 1-3+ forward PEG

Creative-Cranberry47

financials are rock solid. it has a forward PE in the 4's and a forward PEG at .1. Peers trade at forward PEG of 1-3x. ROOT could 10x today and still be cheaper than peers. what are you looking at?

Creative-Cranberry47

forward PE in the 4's and forward PEG at .1. what exactly is cheaper than ROOT?

Creative-Cranberry47

way too low. if ROOT grows at 50% CAGR with hitting growth levers, they'll trade at a forward PE in the 4's or PEG at .1. If ROOT 10X today it would still be trading cheaper than peers. i have a 2074+ PT based on a DCF analysis

Creative-Cranberry47

>This ranking does not exist anywhere on the internet, and I couldn't find it in any NAIC documents. Where'd you get this? see attached for the link:https://x.com/bjmtweets/status/1935105045844082816 this is a paid subscription by NAIC for rankings. based on a combined score, ROOT was ranked #1. i know you talked about loss ratios, but ROOT is leading. the ones ranked below are either commercial/speciality. >75% combined ratio is purely speculation, they currently are at \~95% according to their Q2-2025 letter. Yes, their gross loss ratio is 58% which is improving but is far from best-in-class, and sub-10% expense ratios would be a first. I'll give you here that meeting these things would be amazing - but believe it is prudent to remain skeptical that they would be able to create something with so much success without everyone else also kind of figuring it out and eating up the new margin. Geico has a 10% expense ratio despite being technologically challenged versus ROOT. ROOT's ai tech stack will make them 2x more profit efficient than their legacy peers. As revenue increases, expenses will flat line, and margins will improve. you have to look at forward revenue, and not backwards. Who has better loss ratios? NAIC rankings doesn't show any one better. >Public float typically includes most institutional holdings and you don't normally get to subtract them to get a real liquid share float - just because they are institutions doesn't mean they would hold into a short squeeze. The float already excludes shares that are illiquid - we are nowhere even close to 66% short float. For other readers - we are actually only at a 12-17% float which isn't nothing but nowhere near a catastrophe. it depends on how you define public float. im defining public float based on outstanding minus insider ownership, minus institutional ownership minus fund trackers. this will put SI of float above 66%.. >Not sure how you got this number. They are priced at $91, in H1-2025 had net income 38.4M on 15.3M shares, \~2.51 EPS, annualizing this is \~$5 TTM and that is a P/E of 18, not 4. To make a real forward estimae you need street estimates and there isn't a number out there that supports a single digit P/E right now. the past quarters ROOT has beaten EPS estimates consistently by the 1000's of percent. are you really going to continue to use "street estimates" for your thesis, just so ROOT can beat estimates again by hundreds to 1000's of percents? based on analysts track record if they consistently repeat their mistakes, we're looking at 200 EPS per share. im actually being conservative with a fraction of that as forward earnings. >For anyone reading, this is predicated on (a) huge market share capture in a regulated cyclical industry, (b) a collapse of their expense ratio WHILE aggressively growing, and (c) convincing the market to price them like a tech company with 40x forward earnings. Peers like all state, travelers don't grow. they have 1-3+ PEG levels. ROOT will grow at 50%+ CAGR when growth levers are hit. a 40X multiple will valuate root below a 1 PEG. Look at Tesla. it trades at 20X peer despite doing less revenue. Look at HOOD thats trades at half schw despite doing 1/6 of the revenue. The market prices based on growth and innovation. Peers are losing customers and are non-innovative. your rebuttals were mostly all wrong, and it sounds like you might be short the name, where i wish you all the best.

LargeSinkholesInNYC

The market will stay overvalued for a long time because the yields on corporate and government bonds are just not attractive enough. But it's not even that overvalued since both Amazon and Google trade at a PEG below 2.

LargeSinkholesInNYC

PEG is way above 2 and the only thing that can justify the current price is if they keep beating earnings for the next 5 years.

Humble_Dimension9439

What is "overvalued"? What is a "high" P/E? Is P/E, which typically using TTM EPS for the denominator, a good multiple to use for high growth, innovative technology companies? Is it any coincidence that P/E for the market has increased at the same time the proportion of these tech companies that make up the index has increased? The market is trying to price in the growth and innovation of these tech companies. That's a tough thing to do, but I think it has led to multiple expansion. PEG ratio might be better, but financial analyst are notoriously bad at understanding exponential growth

Echo-Possible

The earnings don’t support it. They have a 37x earnings multiple. Price to earnings growth ratio (PEG) is expensive at 2.3x. How much multiple expansion do you think is warranted? It’s already expensive based on earnings growth.

_hiddenscout

I know u/creemeeseason follows both names. BMI always been kind of too expensive in terms of valuation for me. I think ITRI is a bit cheaper and kind of the name thing BMI does, with smart meters. I always try to buy names with their PEG under 2. I saw your post from the other day, but not it's kind of late to the game now, but aerospace might be another space to look into. Like you said something about Rolls Royce, if I remember correctly. Their growth has been from their jet program. I picked up some ATI after it sold off from the last earnings. I also own CRS, which are both specialty metal companies. Didn't really post them, because they are still secular, which I couldn't think of names that fit what you are looking into.

Dear-Captain1095

Yeah that’s fair, the timing problem is real, and I agree most people hold laggards too long. Indexes aren’t immune either (SPY held GE, CSCO, INTC way past their prime). My idea is to stay concentrated but have a simple checklist for when a name’s moat breaks (PEG blows out, cash flow turns negative, growth slows). I’d rather tilt harder into fortress names now, knowing I’ll need discipline to rotate later.

Dear-Captain1095

True, you can’t know with certainty. That’s why most people should just buy the index. My approach is basically the same names that drive VOO/QQQ already, just overweighted toward the PEG-friendly ones and with some healthcare/luxury. If one of them really does stagnate, I’ll rotate.

Dear-Captain1095

VGT is definitely a clean way to just buy tech, but it’s a bit different from what I’m aiming at. VGT is overweight AAPL/semis and doesn’t include GOOGL, AMZN, META at all (they’re in Comm Services/Discretionary). My tilt is more toward those PEG-friendly ad/AI compounders. So in a way, my portfolio is like a custom VGT+QQQ blend, but with intentional weighting.

Dear-Captain1095

Fair point… indexing is the baseline and works for most. I just don’t want to own the laggards in VOO, so I’m intentionally overweighting the PEG friendly compounders (GOOGL/AMZN/META/ADBE) and balancing with some healthcare/luxury. These aren’t Nokia/Kodak… they’re still growing double digits with fortress balance sheets. I get the volatility tradeoff, but I’m okay taking that shot at higher CAGR.

KopOut

Because its current PEG ratio is 4.72. Seriously, just look objectively for a second they raised their sales forecast to 3.75-4.75% annual growth rate and they are trading at a PE over 40. Do people not understand what that means? The PEG is also insanely high (as you would expect based on my first paragraph). Nobody would pay this for a business with those numbers. You would never get your money back.

finesseconnoisseur

A correction in a stock doesn’t mean investors fail to grasp that government military spending will drive revenues. What matters is whether the growth already priced in matches reality. You look at the stock’s trading levels against historical standards and test whether the upper or lower bounds are justified by fundamentals. If more revenue is coming in (as you point out, and which is the simplest thing to understand about Palantir) the real question is how that revenue impacts valuation through PEG or normalized financials, and how much that should actually move the stock.

Creative-Cranberry47

forward PE is in the 4's. that puts the forward PEG at .1 with a 50% CAGR.

Creative-Cranberry47

forward PE is in the 4's. why would you trust the analysts that have been wrong by 1000's of percent on EPS. & forward PEG is .1. could easily 10x and still be cheaper than industry standard

Creative-Cranberry47

forward PEG of .1 lol

Creative-Cranberry47

root trades at a forward PEG of .1, where other insurers trade at 1-3 PEG levels. don't need to look at P/S. just look at the PEG

Straight-Annual8687

With all the raping going on you'd think PEG would be mooning.........

Kurt_Knispel503

kick out anything with a PEG over 2

morinthos

You guys aren't even trying. I put this in a chatbot and this is what it gave me. Sounds more realistic. > Bro… $ROOT is a straight up float trap nobody’s watching. >Institutions quietly grabbed **2M+ shares last quarter**… now they own like **70% of the float**. Add insiders + funds and there’s barely any shares left out there lmao. Retail snoozing while whales are cornering this thing. >Some receipts: >T Rowe loading 800K+ >Morgan Stanley doubled up >Blackrock almost 750K now >Citadel stacking calls 👀 >Even GS + Vanguard quietly upping bags >57 NEW funds, 83 funds ADDING. That’s not “random”… that’s accumulation. >ROOT isn’t even some trash SPAC — they’re actually cracking the old insurance model w/ AI + telematics. Partners like Hyundai, Carvana, Experian already on board. 7K+ agents signed up in 2 qtrs. >Market cap = $1.3B 🤡. Legacy insurers trade like 10–20x higher on PEG. ROOT at **0.1 PEG** lol. >Not saying it moons tomorrow… but when retail realizes the float is basically gone + whales already loaded = kaboom potential. >I’m just parking this here before this thing gets sent. Don’t say I didn’t warn u.

PaperHandsTheDip

EOD lots of the big prop firms are manipulating markets. I see it all the time in crypto. It's just a question of how much, how much do they get away with & whats the punishment for being caught? For example - if you remember LUNA / UST? Turns out Jump Capital was manipulating it / artificially maintaining the PEG to attract investors into LUNA. It was a complete ponzi. Once it got big enough they pulled out and profited ~1.28b billion. The punishment? A mere ~$130m fine. They literally knew it was a ponzi, sustained it to attract naive investors / retail and pulled the rug on them. If you lost money on LUNA <- the culprit was jump. https://www.coindesk.com/business/2023/02/17/jump-crypto-is-unnamed-firm-that-made-128b-from-do-kwons-doomed-terra-ecosystem-sources All the big firms do similar shit. They usually just get away with it...

Creative-Cranberry47

ROOT easily hands down. here's why: ROOT is significantly undervalued with a TTM PE in the 15’s & a forward PE in the 4’s and a forward PEG less than .1. If ROOT 10X today, it would still be trading cheaper than its peers who trade at 1-2+ PEG valuations.  ROOT is projected to do billions in NI by 2029 end. at 6B rev & 1.5billion NI at a 40X multiple, that would valuate ROOT at a 60B market cap or $4000 PPS(45x), which could be attained sooner than anyone could expect. here's a quick elevator pitch: \-all 50 states by 2026 end. currently in 35 now \-Onboarding of embedded partners that has yet to be implemented technologically with over 20 major partners in the early stages including CVNA, GSHD, Experian, Hyundai, Toyota, First connect, etc. Should see growth from these partners later in the year going into 2026 \- New major partners that have yet to be announced that are larger than CVNA \- Agressive onboarding of subagencies since public launch in Q4 with now over 7000 subagency partners and soon half of the agency market in a few years. Growth will be exponential on this part of the equation as the quarters go along, with expectations of it adding billions in rev growth annually over the long run \- economy of scale kicking in as time goes on with a 75% CR long term due to ROOT's ai tech stack efficiency making them 2X more profit efficient than their legacy counterparts \- New algorithm changes for H2 increasing LTV by 20%+ \-New products that would double rev growth due to cross-sell, increasing stickiness by 27% & customer pool by 33% due to bundling Buying ROOT is like buying PGR at 5 cents, a 5000X+ return except ROOT will grow exponentially faster due to AI, automation and the internet. ROOT to 2074+ long term.

snbgames

No worries friend. I thought it was funny. Too answer your question, should print. NVDA PEG chart is amazing. Most undervalued mag7.

EvolvingDior

I want to PEG Becky in her Costco Lulu knock-offs.

EvolvingDior

I need both PTLR and TSLA to reach a PEG of 2.0 or lower.

Creative-Cranberry47

Legacy insurers work on outdated COBOL and mainframes. they are years behind both ROOT & LMND. Legacy is still trying to figure out how to untangle cobol code, before they work on AI & telematics. ROOT on the other hand trades at a forward PEG of .1. they are growing incredibly fast. they have only penetrated a small part of the market but that means theres a whole market for them to cover. by the time ROOT is "known", it will be trading at multiple levels higher. you can't have it both ways. both well known, widely used & undervalued. its all about future prospects. do you think Geico was well known when Warren bought them for pennies on the dollar? Also, ROOT has superior pricing, superior loss ratios, and a much more efficient tech stack. ROOT is eating legacy's lunch. Legacy isn't growing. its in the numbers.

jazerac

Look at PE and PEG ratios... they are obscene

Creative-Cranberry47

the thing is UNH grows at a snail pace. Forward PEG now trading at 3.356. ROOT insurance, a more warren like play(similar to his purchase of geico), trades at a forward PEG of <.1. ROOT could 10x and still be considered cheaper than UNH valuation wise.

Creative-Cranberry47

its okay. ROOT is the better insurance play anyways with a forward PEG of .1 vs UNH at 2.7. dont have to deal with health insurance shenanigans, and can stick with P&C

TheDonFulio

Love AMZN—big holding in my portfolio. However, PEG ratio is close to 2. Not sure how you ended up with 1. PE of 35 divided by 3-5yr growth rate of 18.

SubstantialRock821

Honestly AMZN’s fundamentals look strong 23% ad growth, AWS still growing solidly, and e-commerce finally profitable with huge margins. They’re reinvesting heavily and 33% EPS growth with a PEG around 1 feels pretty fair. The hate seems overblown given the numbers

sjkjpjdj

2.5T means nothing. Googles PEG is 1.4ish. The valuation is justified by earnings. Company gave a great outlook for the rest of the year.

Creative-Cranberry47

value is forward looking. Once ROOT taps its growth levers, it will be trading at a forward PEG <.1. If you compare ROOT to UNH who many people think UNH is a bargain, has a forward PEG at 2.7, evaluating UNH, ratio wise at 27X higher than ROOT. Lets not forget the valuation difference between LMND, where LMND trades nearly at 3x the market cap of ROOT, despite LMND losing 200M annually and ROOT on its way to making 100's of millions annually. ROOT does more than 2X in sales as well. a bit of subjective here and it depends on whether or not you believe those growth levers will be hit. management seems to be executing on all angles here.

FillerKill

I used to use a similar model back in the day, focused on sell side consensus LT EPS growth and its corresponding PEG ratio. Blows my mind how many people on this sub aren't understanding this simple strategy. If you're not using fundamental screens, How do you all pick stocks normally, dart board or Cramer?

Creative-Cranberry47

the point is the sales were pre-planned, and were very minuscule in size. so not something to be alarmed about. i would review ROOT's growth levers: [https://www.reddit.com/r/ValueInvesting/comments/1mkv4wh/root\_down\_2637\_why\_the\_market\_got\_root\_all\_wrong/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/ValueInvesting/comments/1mkv4wh/root_down_2637_why_the_market_got_root_all_wrong/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) you generally won't find a name under a forward PEG of <.1. its significantly undervalued.

Creative-Cranberry47

whats out there with a forward PEG of <.1?

Creative-Cranberry47

selling ROOT at a forward PEG of .1 is crazy right now.

Creative-Cranberry47

you seem like a great guy. i appreciate your reply. i do agree on your take regarding growth consistency. for a PEG to be accurately measured, growth needs to be consistent. a company doesn't grow 50% CAGR consistently, so the PEG valuations can be skewed based on one year over the other. thats where a DCF analysts discounted back to current value makes some sense. though, even if we go based on that metric, that still puts ROOT at a significant undervaluation. i dislike going off of PE, but i do like PEG as a better valuation metric.

cosmic_backlash

>i like PEG because it takes into account of growth. Yes, I literally said this, and again the problem is the durability if the growth. If you think it will be 60% growth one year and then -30% the next, the one year PEG is pointless. This is why I talked about the durability. >KNSL seems to be expected to be growing in the high single digits for 2026, placing their PEG above 2. though, i would understand their consistency and speciality niche, giving them a premium. I expect this estimate to be very wrong, which is why I raised the point of blindly believing a PEG ratio. I'm not going to lie, you seem to have good instincts, but unwilling to digest the things I actually communicated. Good luck. I think you're right in this case, but you fail to comprehend the points I was trying to share with you.

Creative-Cranberry47

i like PEG because it takes into account of growth. if a company had low PEs but negative growth, it would just not be worth investing in until they fix the underlying issue in the company. If a company had high PE but yet that company came with high growth, then that would make sense valuation wise. PE values don't really take growth into effect. so a better metric on my end has been PEG values. KNSL seems to be expected to be growing in the high single digits for 2026, placing their PEG above 2. though, i would understand their consistency and speciality niche, giving them a premium. As for ROOT. it has gone through an incredible turn around from losing nearly half a billion years ago to now on its way to making 100's of millions. ROOT certainly does have alot more to prove, but once they do, that would reflect on a higher share price. Theres alot of IFs that ROOT needs to prove, and that includes many of their growth levers. but when executed, there will be alot more untapped share price value.

cosmic_backlash

I like ROOT and agree it is compelling, but I think these PEG estimates are terrible and peg ratio is not a good standalone metric. I think, for example, there is no way KNSL has the highest PEG ratio. The PEG ratio is also very short sighted since it doesn't reflect the durability of the growth. People are often willing to pay more for a durable business vs one that is spiky or unreliable. People don't believe that ROOT is as durable as other businesses, so it gets discounted. An example is KNSL has reliability grown 25-50% several years. Root had negative growth a few years ago. They get penalized for that. That was pandemic related, and they had huge rubberband growth coming out of that. It's hard to normalize their growth going forward.

EvolvingDior

The dotcom bust occurred because people realized that to make the money that the CEOs were promising, users would need to consume 5 different ads every second and read 10,000 spam emails a day. No one was doing the math. No one wanted to hear about practical growth limits. I was on a team that was designing, and I shit you not, an email system designed to scale to 1T emails a day. These were advertising email. Because that was what was promised to investors. Now, at the time, only about 1B people had internet access. And we were one of a dozen major players in email content delivery. The funny thing is, scaling the delivery platform so we could brag about numbers was important. But supporting UTF-8 -- needed to reach the majority of potential targets -- was not a priority. Neither was reliable opt-out. It just had to "mostly work". In 2000, the laws of nature started to take over. The natural limits of growth were becoming apparent and people realized that the PEG ratios were a fantasy. The only companies that really survived were ones that had used their funny money to diversify into adjacent non-internet areas.

Chemical-Skill-126

You can buy etfs by reading a few paragraphs on it but you need to read a few sec filings to make an educated stock purchase. But honestly I recomend stock picking. You can just read books like the intelligent investor and one up on wallstreet in like a mounth. Then after that read like 2 valueinvestorclub articles on stocks of interest. Read a few sec filings. Check free float, short float, make sure the balance sheet is not too big, identify moats, identify customer base, identify is their business model durable against technological advancement, only buy stocks at reasonable ratios like PE under 30, PB preferably under 3 depending on the industry, PEG under 2, P/FCF depending on the industry. Then once you have done that to most of the companies in one industry you may be able to make a good stock pick. Then do thar for like 4-10 diffrent industries and you should have a good stock portfolio.

Creative-Cranberry47

based on a PEG valuation of 1, i have ROOT valued at 60B by 2029 end. discounted to today's value puts ROOT's current valuation at $2074. Obviously, the market disagrees. Though, for the market to see that valuation come to fruition, ROOT needs to hit their growth levers. So that could mean nationwide expansion, updates on embedded platforms, expansions of products or new partnerships. the market needs to see ROOT executing on all angles, to be more comfortable with that valuation.

NNNTrader

I have a couple hard rules I’ve used in trading for years. #1 - Don’t trade ER. It’s a coin flip. If it spikes there’s always PEG follow thru and that’s probably the best setup you’ll find.

Operation-FuturePuss

And retail marking up the prices to ridículas multiples. It’s not just PE, it’s price to sales, price to book, PEG, etc… they are all well over historical averages and medians. The passive investors using it like a savings account and not placing any weight on the current valuations. Also, the growing availability of margin accounts, the trading platforms that gamify investing and market to the 20 something’s. And now, euphoria and ignoring historical measurements like jobs numbers flattening, CPI slowly turning back up, etc.. It’s a combo of many factors. IMHO

_hiddenscout

I’m more of a valued based investor, so I don’t really care about price targets.  Just the PEG is a bit higher than what I would like, if I was opening a position.  However, defense has done well and so the market might be applying a premium. 

Creative-Cranberry47

glad we are on the same page! the trailing PE is so low and ROOT can grow at 30-50%+ CAGR, putting their PEG at .3.. just insane.

wtf_is_up

P/E (TTM) is not really relevant. P/E (FWD) and PEG are somewhat relevant but depends on the quality of future earnings estimates.

BeerNirvana

❌ Issues That Hurt Credibility ❗️Incorrect Sector Framing You mention media, entertainment, or tech — but TVGN is a biotech company, working on off-the-shelf T-cell therapies and AI-driven drug development. This disconnect immediately raises red flags for knowledgeable investors or analysts. ❗️Unverified Financial Claims "Recent earnings reports show revenue growth, profitability, and strong cash flow" → This is not accurate. Tevogen is pre-revenue and has no commercialized products. The company is not profitable, and any cash flow likely stems from financing, not operations. ❗️Valuation Metrics Aren’t Applicable Metrics like P/E or PEG don’t apply well to early-stage biotech. These companies typically operate at a loss and rely on pipeline milestones and partnerships, not earnings multiples.

AskGrok

Depends on your definition of "overvalued." Palantir's stock has mooned—340% in 2024, another 57% YTD 2025, hitting a $409B market cap and ranking as the 23rd most valuable company globally, per recent Economic Times reports. It's trading at a PEG ratio over 8, which screams "expensive" compared to peers like CrowdStrike or Palo Alto Networks (Yahoo Finance data). Bears on X call it diluted trash with 5% annual share creep and hype-driven multiples, while bulls point to 48% YoY revenue growth, $4.1B guidance, and AI dominance in gov contracts (TipRanks, 24/7 Wall St.). Fact is, it's been "overvalued" by traditional metrics for years yet keeps climbing on momentum and Thiel/Karp mystique. If growth stalls, it crashes; if not, the meme lives on. I'd say it's richly valued, not irrationally so—yet. Buy the dip or short the peak? Your call, degenerate. Sources: - https://finance.yahoo.com/quote/PLTR/ - https://finance.yahoo.com/news/buy-palantir-stock-57-gain-075500552.

SeriuoslyCasual

PEG is always superior to PE because it helps helps weed out the companies that are cheap due to no growth. PE tells you if it’s cheap. PEG helps assess if it is cheap for good reason

siddsp

I wasn't talking about PLTR specifically. I think PLTR has an absurd valuation regardless of how "good" the company is. I also don't think PEG is a good measure because it arbitrarily divides by the growth rate. I think a more accurate measure would be projecting the earnings growth and seeing how long it takes to recoup your initial investment.

Stunning-Voice3407

Try investigating the PEG indicator and you will understand. (The P/E is a sort of specific weight of the company, the lower it is, the easier it is to fly)

One-Yard9754

PEG in this case would have some merit. But yes, a multiple of sales would be a much better metric to use….

Mobile-Bar7732

P/E is not a indicator of growth stock. PEG ratio is better indicator as it uses projected growth. A PEG ratio of less than 2 is good. Palantir's PEG ration is 5.44 which is still bad.

unjour

What are your thoughts on the PEG ratio? Also interested what P/S and revenue growth would you want for Palantir at current prices?

quuxquxbazbarfoo

Forward P/E. Forward PEG.

alexunderwater1

PEG ratio is a clearer picture than PE ratio

joepierson123

The PEG ratio is popular with growth stocks PE ratios are more for stable stocks. 

BetweenCoffeeNSleep

(Trailing) PE doesn’t matter when investors feel safe. When everything looks rosey, they all talk forward PE, PEG, and growth narrative. Trailing PE can start to matter again very abruptly when confidence is shaken. PEG darlings run the hardest, and can also fall the hardest.

brainrotbro

Hence PEG

stiveooo

[https://www.td.com/content/dam/tdgis/document/gl/en/pdf/insights/thought-leadership/the-P-E-ratio-a-users-manual-2023.pdf](https://www.td.com/content/dam/tdgis/document/gl/en/pdf/insights/thought-leadership/the-P-E-ratio-a-users-manual-2023.pdf) "Too often, investors do not perform this kind of analysis. Rather, they rely on valuation metrics like the P/E ratio or the PEG ratio, treating them as if they are fundamental characteristics of a stock in their own right. But as we have shown, without an understanding of how a company’s ROIC is driving the trade-off between its free cash flow and its growth rate, those ratios can be worse than useless. They are simply not a reliable guide to valuation on their own. In many situations, investors use P/E or PEG ratios in a way that implicitly assumes a static world, where past relationships are a reliable guide to the future. But the world is dynamic; relationships change constantly. P/E ratios can be the harbingers of that change, if we are alert to the information they carry. Rather than making assumptions about how the P/E will change based on historical averages, the job of an investor is to figure out what assumptions the current P/E is signaling, and then to make a judgement about whether those assumptions are likely to prove true. Put another way, the more convincing investment thesis is not “Company X is attractive because its P/E is below its long-term average,” but rather (for example) “Company X is attractive because the current P/E underestimates the improvement in ROIC that the company will achieve.” P/E ratios are the most widely used valuation metric in the investment world, but they are also the most widely misused. In truth, most people use them in a way that renders them meaningless. Properly understood and properly used, though, the P/E ratio can be a valuable tool for deciphering the coded information that every stock price contains."

stiveooo

P/E is useless. 10 P/E doesnt mean its cheap, and 100 P/E doesnt mean its expensive. Cause PE doesnt show how much goes/could go to the shareholders. PEG is also useless. But is better than PEG. Both are value metric traps for the lazy investor. [https://mjbaldbard.wordpress.com/wp-content/uploads/2020/09/michael-mauboussin-e28093-research-articles-and-interviews-2014.pdf](https://mjbaldbard.wordpress.com/wp-content/uploads/2020/09/michael-mauboussin-e28093-research-articles-and-interviews-2014.pdf) read this from page 26 if you want to get better. My performance from 2020 is 38% cagr. \+400% since 2020. You just need to keep learning and reading and know that we are dumb but smarter/better vs our 6m ago version.

DontMessWithYohan

Take your pick… $XEL, $MSTR, $PEG, $CHTR, $PEG

SapientiaPT

The problem is that this assume there is no growth in the earnings. A good indicator to help with this is the PEG ratio which is basically (P/E)/(EPS Growth) and, if under 1, basically means the stock is undervalued relative to its expected growth.

D33RAAJ

Based $PEG

BlueSpace71

That’s where PEG comes into play.

ContextZealousideal

Respectfully disagree. Monetary policy is nothing like what we had with Alam Greenspan. Mag-7 stocks are not grossly overvalued and it’s debatable what “fair” value is. Price to cash flow, PEG ratios and other metrics are reasonable. If your thesis is that a 2000 like tech crash is coming, you ought to short the XLK and ride off into the sunset. Let us know how that works out for you.

SickBuck25

The PEG ratio is like 1.2 while the rest of the mag7 are over 2. Still room to run

zbern

PEG is 5 if you look at that stuff

_hiddenscout

Anytime man. I've done really well with them. Found a few years ago, so the cost basis is about 39 for me. I always think of this as a place where we can help each other make money. I wouldn't expect you to really know them, I haven't heard anyone talk about them really outside of myself lol. I'm more on the GARPY investor, just looking for great companies at good prices. It's one my favorite type of companies, really low float and ok insider ownership. Since 2021, the ROIC has been like above 18%. Revenue growth is finally really picking up, but gross margins have been increasing as well as the EPS growth. On top of that, the TTME PE is 23 while the forward PE is 19. PEG is 1.5. It also pays a little dividend, which is pretty cool. Love when small market caps are healthy enough to support a dividend. [https://stockanalysis.com/stocks/clmb/statistics/](https://stockanalysis.com/stocks/clmb/statistics/) [https://quickfs.net/company/CLMB:US](https://quickfs.net/company/CLMB:US)

ThinkingOfTheOldDays

PEG ratio is in the 4s, vs goog at 1.38. it could be real bad if the market ever starts to care

Qwidox

**Company has 27,9% operating margins and trades at 12x earnings** Current Ratio: 6.35x Quick Ratio: 6.02x Cash Ratio: 0.59x Interest Coverage: 20.13x Debt/Equity: 0.19 P/E: 12.85x PEG: -1.41x P/B: 1.59 P/S: 2.80 EV/EBITDA: 9.52 Gross Margin: 95.45% Operating Margin: 27.87% Net Margin: 21.79% ROE: 12.77% ROA: 6.95%

_hiddenscout

It’s still a solid valuation. Forward PE of 10 and PEG of 0.78.  https://finviz.com/quote.ashx?t=SKYW&p=d Last quarter sales grew by like 18% and EPS by 60% https://quickfs.net/company/SKYW:US It’s still an airline with its its risks, but it’s pretty cheap for what you are getting. 

Comprehensive-Tea121

Bingo. We haven't even started paying higher prices due to the tariffs yet, but that's coming. Then later after that, corporate earnings will take a hit and revise downward. PE and PEG will then be overvalued. There is a delay as all this policy moves through the system. Severe inflation will be exacerbated by the ICE raids going after farm workers, construction workers, restaurant workers, etc. They're about to have billions more dollars. If it plays out like previous recessions/depressions, the markets will eventually recover. If America has a King which it seems like scotus wants to facilitate... There will be no return to sanity this time. No I'm not bitter, I sold most of my stuff off because for me it was time. I entered the markets in 2001 after 9/11. I've made my money over the years. Lost quite a bit in 2008 but bought the dip. Back then the nerdy bow tie guys were warning of severe problems in the economy, but the markets didn't wake up and smell the coffee for a while. This time is going to be worse. To say they're cutting regulations is an understatement. More like dismantling huge parts of the country like tin pot jackasses.

Shatter_

NVDA on a PEG under 1 while PLTR is on 160x sales with ~30% rev growth. The two are worlds apart.

RainieY

The bet is that AMD can take a larger share of the growing AI market. Because it's 1/15th the size of NVDA, it can potentially 3x,4x,5x from here to 1 trillion in 2-3 years yielding more attractive returns because NVDA can't easily 2x, 3x from here. Basically the PEG ratio, not the PE ratio. But the PEG is tricky to calculate as it all depends on how much growth you give it.

iratezero

Freaky ahh technical analyst was just on CNBC talking about a PEG ratio. Like bro we're discussing stocks not your gapped ber anoos, stop bragging and stay on topic.

shrimpinainteasy

Replying to Hot-Celebration5855...Expensive compared to what? It's in the Mag 7 with a PEG of less than 2. Don't forget growth matters too

Mobile-Bar7732

>They fail to understand forward projections PEG ratio is used for growth stocks as it factors in growth. A PEG of 2 or less is good. Tesla's PEG ratio 12.61. It's well beyond irrational and detached.

Royroy87

Asts and Rklb are speculation plays that can crash at any moment. AMD is being eroded by NVDA constantly at a lower P/E and PEG. Google and Amazon are good sure.

EZ_PZ_LM_SQ_ZE

The company’s valuation makes no sense. Its PE, PEG, and price-to-sales ratios are high on meth. Half of its gross revenue goes to Coinbase as a distribution fee, leaving only about $650 million in ‘net’ revenue over the last year. Almost all of that comes from earning interest on U.S. Treasuries. Next CPI PPI cycle I believe we get capitulation from JPOW to lower rates. Genius Act destroyed its moat. Big banks, Fintech even fuckin community banks are now legally allowed to apply to issue a stable coin. USDT, which is its larger far cooler big brother, has a path to issue in the US market. Circle IPOd at $31 and got pumped 9x out the gate. Lock up ends in December. This week we see sub $200 and probably the biggest panic sell of a recently IPOd company we have seen in the past decade. Puts are free money. Jamie Dimon is Jesus.