PEG

I-CameISawIConcurred

I beg to differ. Its forward P/E is 7.63 with a TTM PEG of 0.09, suggesting it’s still massively discounted and significantly undervalued, especially compared to its peers. This for a company with a multi-year supply constraint where its production capacity is 100% sold out through 2026, with committed orders already stretching deep into 2027. The market hasn’t fully priced in MU’s growth.

DeathStar_81

P/E is a bad valuation metric, especially for growth stocks. Reddit has grown ttm revenue by 70% and earnings by 400%, with 90% margins. PEG or PE/G is a much better valuation metric to use. Anything below 1 indicates good value. Just looking at PE is what gets you buying value traps with flat to declining earnings.

Own-Philosophy-5356

https://finance.yahoo.com/quote/ROBO/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAL90lhMuK1TAXlZAPmX5s34xJLQN56_wu3wcsDdOTOTVyjZuCtxgGklcwKRw2j0f89p-25f5lS1rjX1SpejvjZF-08om8ZW-l-RYp6aHEhNk-YzkgJVJcCVeZua0PEG73ffxZFV2hYIR9uyKeB-M86IQbqxr4sun9EW59naxoiAf

Kaiser-Rotbart

By what metric is it still to expensive? Genuinely curious. PEG is comfortably below 1 these days. Forward PS and PE aren’t bad either.

_hiddenscout

Possibly? I don't really do predictions of prices personally, when I buy something, I am buy and hold person. I just buy things as long as the valuation of the company makes sense. I go back to one of Buffet's best pieces of advice is this: 'It's Better To Buy A Wonderful Company At Fair Price Than A Fair Company At A Wonderful Price' META valuation is pretty cheap right now, especially for one of arguably best tech companies out there. It's trading at a PEG of 0.9 with forward PE of 17. P/FCF is a bit higher, but that's probably because of the FCF spent. I think here, especially going long, you are buying a wonderful company at a fair if not cheap price.

RainieY

I try to buy based on valuation and it has elevated P/E, elevated forward P/E, high PEG ratio, etc. It can run a lot but nobody has a crystal ball so I feel more confident when the stock is beaten down and valuation looks cheaper.

Original_Mango9316

Unpopular opinion: By every metrics, MU is still insanely undervalued today. With a P/E forward of 11 and a PEG of 0,07, people are really sleeping on Micron. Everyday passing confirms that the shortage will last for at least a few years. 

Wandering_trader99

I don't think I used PEG back when this thesis was written a year ago however I do use it now. Far superior to P/E alone. And as always, compare to sector/industry averages as opposed to blanket figures. I have many open positions atm, MSFT being one of the biggest but Im also slowly loading up on ULVR. Im adding to the stocks which typically get ignored during greed/extreme greed periods in the market. I frikin sold MU around $80...🥲

Okiedokie9x

Thanks for sharing this! To summarize your main metrics were FCF growth, forward PE and ROIC, EPS as well sa macro demand? Did you also use PEG as well. What are your bets atm? I have a huge positions in MU atm based on similar metrics

chilicheezii

Don’t pay attention to analysts they are always behind. In the case of Nvidia they reported 140% eps growth year over year. Revenue growth 85%. If Nvidia can sustain just 75% eps growth over the next year then the PEG ratio will be 0.6 meaning where PEG 1 is fair value, PEG 0.6 means they are undervalued. At 75% eps growth AMD has a PEG of 1.1 meaning AMD is not so undervalued. Forward PE is just a factor of price to earnings. The more EPS goes up, the more the PE compresses

ryzetard

kek, with forward P/E falling all the way to down to 16 in 2028 and PEG at 0.6-0.7 it sure is overvalued xd

TherealCarbunc

ITM leaps will print imo, I've been adding 6/16/28 $15 leaps to my port. It's well undervalued currently on a forward PEG based off their guidance & growth rate - the market is giving them a ridiculous risk discount right now -> I'm buying the fear. Could chop sideways for a bit or could reverse fast if macro provides any easing of recession/lending fears. IDK about $50 in the next year but post S&P inclusion it could see that, they only need a $17.73 share price for MC requirement and have more than exceeded the GAAP profitability requirement. I don't think June is THAT likely for inclusion but i think odds only grow higher after

Mobile-Bar7732

Remind me when SpaceX PEG ratio is less than 2.

TranzitBusRouteB

WMT 44 FWD P/E and 4.86 PEG Ratio is undervalued?

Ialsoreadtheonion

Bag holding then. Look at the all time chart for Eastman Kodak. Many companies have charts like this. The only reason to trade in individual stocks is potential excess returns so learn first from the people who have made them - read books like How To Trade In Stocks - Jesse Livermore. How to Make Money In Stocks - William J O’Neill, Market Wizard books - the recent ones are more useful. Use those as jumping boards to other successful stock operators. Notice the same themes, patterns and rules seem to appear in lots of successful trading methodologies from 1900 until now. Then start investing in stocks. There is no hurry, there are always companies emerging from a base into an uptrend, even in bear markets. Learn how to be wrong (which you will be, often) and not lose much money and feel good about it because you avoided the risk of a larger loss. None of it works unless you do and even then it might not. If screening and ranking by simple criteria worked then most funds would outperform. They don’t. Ratios like PE, PEG, ROE and ROCE can subtly mislead you. You need to be able to look at a summary of a companies financials and spot red flags quickly and understand the nature of the industry to correctly interpret them. You also need to learn how to spot the occasional situations where the red flags don’t matter. Managing small sums is a totally different game to managing huge sums and you should play a game that works for your sums. All this portfolio construction seems like large sums strategy. If you have large sums pay someone better than you to do it for you, hedge it and sacrifice some returns in exchange for lower risk. FOMO is a warning that you may be entering when there is more risk than reward. It’s a sign that at the very least if you do decide to buy that you should take extra care and monitor any position you open carefully. The stronger the FOMO feels the more likely it is that you are entering into a trade not an investment and you will not make money unless you sell at the right time. The only people surprised by a market crash or a stock tanking are the ones who weren’t paying attention.

JustBrowsinAndVibin

AVGO has a Forward PE of 39 and PEG of .94 AMD has 65 and 1.09 NVidia has taught us that huge market caps can still grow hella fast.

Weak-Pomegranate-435

Those numbers by themselves means nothing. Compare them to growth. AMD is still less than 1 Fwd PEG

CarrierAreArrived

all that matters is P/E and/or future earnings/growth. How much it's already gone up is irrelevant. MU's PEG is very low as far as I can tell, as is even NVDAs after all these years of insane growth.

juzz88

PEG ratio my guy. PEG ratio.

Amdvoiceofreason

This could hit, earnings are next month. The Forward PE ratio is what 8 and the PEG ratio is WAY under 1 so it could hit.

richbeezy

Some parts of the market are euphoric, but big tech like NVDA, AVGO, NOW have PEG ratios BELOW 1.00 Been at this for over 26 years, THAT AIN'T A BUBBLE. The niche chip stocks that are up 100% this year are in a bubble.

dieharddubsfan

I can see Bill Ackman's logic. If you look [this fundamentals of GOOGL vs. MSFT table](https://www.stock-table.com/fundamentals?public_uuid=bd32db83-e45f-49c0-aa00-58137d5067c8), at this point in time, MSFT's P/E, Foward P/E, PEG, and EV/FCF, are all better than GOOGL's. That's not to say Alphabet is not going to be a great company long-term, it simply means MSFT is a better bargain right now. I'm long on both GOOGL and MSFT, but i would also rather load up on MSFT than GOOGL right now. Both companies are well-positioned to do great with AI infrastructure and applications.

PopoDontKnow

But that's not a point in of itself. You have to prove AI valuations are lofty like dot com levels in the first place. You can't because earnings growth is absolutely massive, unlike dot com. Remember tech is not a PE game, its a PEG game. People were screaming bubble in AI two years ago! If I look at the stock prices two years ago and then divide by earnings today, these stocks would be dirt cheap.

No-Transportation843

PEG is a more useful metric though 

Lonely_Corgi_728

LITE has PEG value of 0.50 That is cheap.

Hot_Lingonberry5817

Glad we could PEG that out together.

Hot_Lingonberry5817

PEG is what matters when it comes to growth.

No_Conversation_9424

1) You being worried about future pullback in cap ex is COMPLETELY hypothetical with 0 indicators. Actually the indicators are pointing in thethe opposite direction, even 2)The bull case for MU is based on LONG TERM AGREEMENT that is already made. It's growing earnings, profit, PEG, EPS is the foundation for the bulls case. How do you not see the difference? 3)fabs by 2028 wont make a dent in supply. There's just as probabl case for INCREASED demand. Hyperscalers allocated capex for YEARS long, not 1 or 2

ZealousidealSector19

Anyone actually look at PEG ratios

Lonely_Corgi_728

I have LITE PEG value at 0.35 That is super cheap valuation 1.6T transceiver ramp and Greensboro NC fab as next catalysts. Also growth is accelerating, Q3 FY26 rev +90% YoY Q4 guide implies another sequential beat

Bunkervogel

Loaded a huge amount of shares under 33$ (hoping for Double bottom). PEG around 14 now.

HotDoor4125

the PEG ratio point is fair and worth sitting with. 1.8x PEG for a steady compounder isn’t cheap. The reason i lean toward the DCF over PEG here is that ResMed’s margin expansion story changes the earnings growth trajectory over time. 290 bps of gross margin expansion in one quarter is meaningful for a business this size but you’re right that at 20x earnings the upside isn’t dramatic. More of a quality at reasonable price situation than a deep value play.

kneekoh

20x earnings for steady business seems fairly valued -- your fair value estimate is $225, and Schwab is showing AH price at $205, so maybe it's 10% undervalued. On the other hand, 19.7x P/E with a 10-12% growth gets you a 1.8 PEG ratio, which suggests it's overvalued. (Morningstar values it at $290 btw.) All in all, not a lot of upside if you're comparing to tech stocks, but I can see an argument for this in a value portfolio (like many med device companies).

xghtai737

> Costco 53 TTM PE 45 Forward PE 50 x Free cash flow Growing at 10% 4.1 PEG 2.99% profit margin 0.6% Dividend Yield Share count unchanged since at least 2017 Why would anyone want to own it? It's a low margin business with mediocre growth, a high valuation, no income worth mentioning, and no share buyback program. If you want to tell yourself a story about how Costco shares will become more valuable because investors will see shoppers flocking to it in a recession... maybe you'll be right. I just don't see the appeal.

Odd-Gear3376

PEG ratio is quite an interesting argument, however, one would say that it has never been a problem for Upstart since they are not in technology but in lending, hence susceptible to credit cycle dynamics. As soon as interest rates started increasing, their business model ceased to work and capital sources disappeared immediately. The AI moat is very much legitimate but business model risk persists regardless since they are not a direct lender and thus rely heavily on market conditions remaining favorable for both their investors and financial institutions partnering with them. I do think that CEO buying is a positive signal, I won't deny it. However, AMD comparison is a bit too far-fetched in my opinion since they have been in operation for decades now and enjoy monopolistic positions in specific markets.

BillyBobChorton

Talk about PEG not TTM PE if you’re talking about high growth companies 

bananashakewithice

Perhaps start looking at PEG ratio instead of PE to get a better idea of things.

ThatGlockGuy22

Even with the huge run up this year, forward PE is still sitting at 7.60 and the PEG ratio is .26... crazy numbers for sure but looks like no end in sight.

Impressive_Order60

No it’s not. MU has a rationale to it. They had a blowout quarter and they are production constrained not demand constrained. They’re PE/PEG trails NVDA if you project last quarter as the new trend. Nothing vibesy there. It trails NVDA by 50% so that so last quarter earnings suggest at least a 50% rise. There aren’t many companies in the world that can scale MU’s current production so they’re in a good spot for 18-24 months. They shut down their consumer business and are turning it over to enterprise HBM as fast as they can get the equipment.

Raw-Natural-Nate

This week’s paper-trade menu: ADBE if it stays in the buy zone, KMI/PEG/AEP for the boring “AI needs electricity” basket, and 3 TSLA $700 calls for the fully supervised degenerate corner. USO only if oil gives me a discount. Everything else stays in cash because apparently “doing nothing” is also a strategy.

Alter3goh

Fwd PEG looks great

MattKozFF

Data center optics has already gone off, but yes I see further growth. AAOI is name I've been riding. Run up may make it seem expensive but PEG at ~0.6x.

rwc5078

Yes! And NOW, TEAM, MNDY. I bet I have others on my watchlist. You have to double check, but last time I looked, earnings beats and forecasting future growth as well. Most have a PEG less than 1 I am not investing in adobe, because the long dated options prices seem too high. Like no good potential return.

ShowerFriendly9059

Look at PEG, margins, revenue and earnings growth

madison_hedgecock39

Yahoo has NOW sitting at a .89 PEG right now. Might be a good bet

PhatBonerMan

PEG?

DriftMint

MU is still heavily undervalued based on their fundamentals. Forward PE of 6 and PEG of .06 shows that there is actual value not just hype

TheFinancialScope

I’ve been building my screening workflow over the years, and the biggest thing I learned is that ‘buy and hold’ only works if you have a framework for *why* you’re holding something. For long‑term individual stocks, I look at three pillars: durability, trajectory, and valuation. If one of the three breaks, the thesis breaks.” # Durability (moat + balance sheet + business model) You want companies that can *survive* 10 years, not just grow for 2. I look at: – recurring revenue – high switching costs – ROIC above cost of capital – low leverage – stable or rising gross margins If durability weakens, I stop holding. # Trajectory (is the business still compounding?) This is where most “buy and hold” fails. I track: – revenue growth consistency – margin expansion or contraction – unit economics – management guidance vs. execution – industry tailwinds If the long‑term trajectory bends down, I trim or exit. # Valuation (don’t hold something that’s priced for perfection) Even great companies can be terrible long‑term holds if you buy at the wrong price. I look at: – P/FCF – EV/EBIT – PEG – long‑term multiples vs. current – implied growth baked into the price If valuation disconnects from fundamentals, I reduce exposure. # Putting it together A stock is a long‑term hold only if: 1. the business is durable, 2. the trajectory is intact, 3. the valuation still makes sense. If any of these break, I stop holding, even if the stock is “popular”. This is the framework I use in my analysis workflow, and it’s held up better than anything based on vibes or hindsight.

FinePerformance1046

According to PEG ratios Micron and Sandisk have another ~1000% before they’re fairly valued 😂

avilacjf

Dude the PEG ratio is 0.2 there are way riskier stocks out there. We already saw what a turboquant moment does to this stock. Look up the gains since then.

Disastrous_Rent_6500

If the PEG ratio is still low, it don’t matter that much

ShowerFriendly9059

Micron has a forward pe of 7x and PEG 0.20. Learn about valuation metrics, my man

gopoohgo

Look at PEG.

ShowerFriendly9059

Not even close. Their forward pe is 71x, PEG > 1.0. Super overpriced

PrestigiousAccess765

They are actually still cheap based on PE or even more on PEG. Solely the chart tells us nothing

blabberboy

I'm also interested to see the Groceries/Retail bubble play out: COST, WMT (both are big/stable companies with PEG ratio > 4)

foamboardsbeerme

PEG is ~.84. Forward P/E is ~21. Looks attractive from a pure valuation/growth standpoint. I dont like catching falling knives though.

PrestigiousAccess765

Yes. It‘s crazy how low their PE still is after this run and PEG of Micron is somewhere near 0.07. 

ValueEquities

Not overthinking - the data backs you up. 58 of 68 analysts are bullish with a consensus target implying 66%+ upside, and the PEG sits at 0.79x vs 1.76x for the S&P - you're paying growth-adjusted discount here. The SaaSpocalypse fear is real but NOW's 98% renewal rate and $28B RPO make it more "mission-critical infrastructure" than discretionary SaaS. I actually track this one on VCP Scanner for exactly this setup - the valuation vs. 5Y average tells a compelling story right now.

Rational__Human

The forward P/E of the S&P500 is around 22 right now compared to historical average of 17 or so. The problem with comparing P/E ratios and CAPEs without any other context is that you're ignoring growth rate. The PEG ratio is currently sitting around the historical average because the current index of stocks is growing earnings twice as fast as the historical values. Higher growth makes the index worth a higher multiple. TLDR: The S&P500 is much closer to fair value than one may expect when simply comparing P/E multiples with no regard for earnings growth rate.

RainieY

> ANET It doesn't meet my investing criteria even under 10% allocation, very high risk. From a quick glance, with a P/E ratio over 60 and a PEG ratio over 3, it seems incredibly overpriced even accounting future growth. You would have to make a strong case that isn't shown by the numbers.

RainieY

Selling half would likely be the best option, but I have hard time doing that because I usually invest with conviction and this time I'm unsure. As for PLTR, I did buy it previously at around 16$ in 2024 but I quickly sold before it hit 30 because I was concerned about valuation, it never fit my investment criteria after I sold always having very high P/E, very speculative, high PEG ratio etc. I'm very happy for whoever made money though. Personally I wouldn't buy it even if it was 50% cheaper.

pineapplekiwipen

you're right forward pe at 10x and PEG at basically <0.1 is some crazy bubble

_hiddenscout

This thing dips from time to time, if you want to buy, I think waiting for those dips helps. I always go back to fundamentals, here it's not too bad. Like it has a PEG of 1.35 because EPS is growing so much. However P/FCF is a bit high at like 43 [https://finviz.com/quote?t=IESC&p=d](https://finviz.com/quote?t=IESC&p=d) It's even higher on stock analysis [https://stockanalysis.com/stocks/iesc/statistics/](https://stockanalysis.com/stocks/iesc/statistics/) I always try to stick with PEG under 2 and P/FCF when buying. I'm not a value investor, so I'm not looking for deep value. I'm GARPy, meaning I'm looking for a fair value to undervalued price. So I think waiting a bit if it keeps coming down, would give you a better entry.

MLB-LeakyLeak

P/FCF is around 40% PE just one trailing indicator… not a great one, and overhyped by r/valueinvesting. There are other ways to determine a value company. RDDT Forward P/E in the 20s, PEG is around 1, P/B is around 9

Ok-Thought-9960

This guy👆 has a high PEG ratio

Lonely_Corgi_728

LITE PEG is only 0.35 LITE > COHR imo

Odd_Escape_8683

WarrenAI from investing.com says this: Classic value trap risk—the numbers say “cheap” (PEG, P/E fwd), but negative margins, volatile EPS, and lack of a dividend keep the floor shaky. Upside depends on a successful turnaround. Not saying that I agree, curious about your thoughts.

_hiddenscout

The TTM pe is 40 while forward is 27. PEG is 1.38 and P/FCF is a bit high at 40. https://finviz.com/quote?t=APH&p=d

Fickle-You-5101

I always look at Pe, its a very fast way of comparing companies, then determine the growth for myself, PEG youre letting somone else decide.

Ashes1984

It has a PEG ratio below 1. MU can seriously do another 2x easily

longisthewinter

Their earnings forecast for the new few quarters are obscenely bullish; they could double in price to 2k a share and still easily be undervalued based on PE and PEG ratios.

_hiddenscout

A few things. For one, a PE ratio is just one piece of data and you should be using more when analyzing stocks. Like I actually never look at PE, but rather look at PEG and P/FCF when screening. I look at more inputs, but those are like the two around price. Also, different sectors has different PE ratio averages. What investors are looking to pay for like a software company is usually different than like an oil company. That's why in general it's not a great idea to compare companies in different industries. Like trying to compare Google to Costco doesn't make sense. Low PE's can be value traps sometimes too. Meaning investors are willing to pay less since usually lower PE stocks tend to be paired with companies with slower growth.

_hiddenscout

I actually got out of the name recently. Just moving capital to other plays. However, does look like a solid entry for a long here. Looking at P/FCF at 11 with PEG 1.8. I think AMTM also looks really interesting here.

Disastrous_Rent_6500

If the PEG ratio is below 1.0 AND the company is a fantastic business, it’s very hard to go wrong there

Glittering_Water3645

I would buy below PEG 1. Good company

ajaykumar2023

Great analysis! AXP definitely looks like a 'quality at a reasonable price' play right now. ​A few points that support your thesis: ​Valuation vs. Peers: You're spot on about the valuation. While Visa and Mastercard trade at much higher multiples (often 30+ P/E), AXP’s forward P/E of 16.03 offers a much better margin of safety. ​The Berkshire Factor: Being a top Buffett holding isn't just about prestige; it shows the strength of their 'moat'—specifically their closed-loop network and high-spending cardmember base which is more resilient to inflation. ​PEG Ratio: A PEG of 1.12 for a company with consistent 14% growth is very attractive. It suggests the market isn't fully pricing in that steady compounding yet. ​The only thing to watch would be the rising delinquency rates across the credit sector, but AXP's premium customer profile usually hedges that risk better than others. Your DCF target of $392 seems realistic for a long-term hold. ​Definitely a strong candidate for a core portfolio. Thanks for sharing the numbers!

Cozyteammate

PEG 2-3 max SpaceX has 80 P/S? Still unprofitable, so burning shareholder's equity Even if 20% net margin that's still 400 P/E For a company growing 50% YoY that's PEG ratio of 8 So fair value is 50-75% below IPO price, which is maybe 400-500 billion max

pineapplekiwipen

yeah, why short trash like CRWV or quantum garbage when you can short the most important company in the world trading at like 0.5 PEG lmao

CD274

Just need to analyze the business, check analyst consensus (sndk got upgraded to 1350-1400 today, micron 550), check forward p/e and PEG (shockingly low for sandisk), and see how long they are sold out (now through 2028). Are institutions heavily involved in the moves (yes) or retail only? (Avoid)

Cozyteammate

80 P/S with negative margin. Even if they had 20% net margin, it'd still be 400 P/E With 40% revenue growth rate, that's 10 PEG I mean, I'd prefer PLTR at this point

tomato232

With an earnings growth rate of 62%, it would bring a P/E of 56 down to 35 in a year, with earnings still increasing at 46% the following year. The E (earnings) in rapidly growing companies grow quickly, increasing the denominator, so while P (numerator) increases, the P/E still declines. The 30-year S&P 500 PEG is 1.3, so if the market values RDDT at the market average, it would have a P/E of 81 next year. fP/E and PEG are the main valuation metrics—P/E is backward-looking (we are never paid again for earnings already made, only for the business to come) and serves only as a supportive metric. RDDT's current fP/E is 23 😊

themattissue

I’m going to assume you are holding the stock. You have to look at this objectively. - Google is already worth 4 trillion dollars. - Their revenues will not grow at the same rate (%) as these other players because of its market cap and other sections of the business. - Google is already priced aggressively. It has a PEG ratio of 2.34, forward p/e of roughly 30, P/S of more than 10. - The stock has more than doubled this year. That means its value went up by more than 2.2 trillion dollars. If that doesn’t qualify as “hype”, I’m not sure what else to call it. Their moat is priced in. You can say it deserves to be even higher, but clearly the market does not agree, at least for now.

springmeds

The source I use gives projection of 28.2% EPS growth annually, 59/28=2.1. To have a PEG less than 1 month before should predict over 60% annual growth.

_hiddenscout

Yeah, really got a lot of performance like a few months back when someone mentioned how they have nuclear exposure, like an analyst lol. A lot of defense have been selling off, but now looking at forward PE of 10, P/FCF at 24, and PEG at 0.75. not a bad deal!

Lonely_Corgi_728

That’s me. Still holding SNDK, MU and LITE. Yes they’ve all run hard, but price action alone tells you nothing about whether a stock is expensive. What matters is valuation relative to forward earnings and growth. Look at forward PE and PEG against growth projections. A stock that doubled can be cheaper than it was before the run if earnings estimates tripled. That’s exactly what’s happened with parts of the semi cycle — the fundamentals caught up and then some. People anchor to their cost basis and think ‘it’s up 200%, time to sell.’ The market doesn’t care what you paid. The only question is whether today’s price is reasonable for tomorrow’s earnings. If forward PE is still reasonable and the growth story is intact, selling just to lock in gains means you’re exiting a winner to buy something you understand less well.

Silentbob2306

PEG ratio is <1

Cool_Two906

LITE has a forward PEG ratio of .54 to .87

springmeds

PEG ~2 is fine but not cheap.

pentelhos

your basis for comparison is what pray tell? Nvidia has lower p/e, lower PEG, lower forward p/e and loses more money in Huang's couch cushions than AMD makes

StonklordBenno

I think it is a buy now. Yes the PE is high, but looking at the PEG (pricing in 5 year growth) it is trading cheap. Europe rearming trend will continue, Germany wants to become the biggest European army by 2039, and we have 3 years left of the Trump admin (not a particularly conflict-avoiding one). There are some worries, like the cashflow being a bit bad latest earnings. However, I remain bullish, just along the professional analysts, these remain buy ratings with PT of 2000-2500 roughly.

juzz88

AMD's PEG ratio is still below 1. It's still got plenty more to run, especially if earnings are good. Intel, I kinda agree with. But as long as the government is holding their hand, it won't dump.

livingbyvow2

Did you look at their PEG ratio over the next few years? FCF yield? These guys are betting the house on AI and their search cash cow may get wiped out if people increasingly use LLMs for their queries and shopping / product discovery - especially as agentic solutions like OpenClaw are about to be released by all the major players (including Meta). In Enterprise, Anthropic is taking the lead by a wide margin. At $4Tn market cap the IPOs you mention represent barely 5% of their market cap and are already largely priced in. They will still use Broadcom to the TPUt, Mediatek is only handling the TPUi chip, and that's the first time they use them at scale (which creates a significant execution risk) - and in both instances the massive increase in HBM prices will negatively impact their unit economics on both chips. The company is priced for near perfection and I would strongly recommend everyone spend a little bit more time looking at the numbers and the story before jumping on that bandwagon.

Cozyteammate

0.5 PEG for a declining sector. You need very big room (margin of safety) for stock in bad sector So assume LULU grow eps 10% per year I'd see it as "investable" at 5 P/E (0.5 PEG)

Disastrous_Rent_6500

Well, I can explain the PEG ratio but I don’t think is worth my time to be honest. So I’m just gonna say you don’t got it and by an ETF

_hiddenscout

I follow a lot of dense and aerospace names. Also own a lot of them too. I post more in the daily threads. TDY is a great company, but a big reason why I never bought them is that they are too expensive for how I evaluate companies. I'm a GARPy investor, so I like to buy things at a responsible price. When looking at TDY, it's not the cheapest name out there: [https://stockanalysis.com/stocks/tdy/statistics/](https://stockanalysis.com/stocks/tdy/statistics/) PEG is at 3, P/FCF is at 28. So to me, you are going to be paying a premium for the company. Part of doing well in the stock market is to make sure you aren't over paying for things.

_hiddenscout

Few things. One is, PE is just a single metric, you should be using more than that. Second, you shouldn't compare PE's from companies in different sectors. Like there is different PE average for different sectors. [https://pages.stern.nyu.edu/\~adamodar/New\_Home\_Page/datafile/pedata.html](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html) I like looking at P/FCF compared to PE and NKE is still showing 64. So even with a low PE level, it's still pretty expensive if you are basing it off the Price to Free Cash Flow. Also PEG is high on finviz vs stock analysis, meaning that EPS growth is probably wonky right now.

tachyonvelocity

Well of course, [on Jan 06](https://www.reddit.com/r/stocks/comments/1q5f2as/comment/ny14m26/): to be fair, I was gloating because reddit dumbs were shitting on regional banks while I was buying them hand over fist, the only outperformer to my holdings were select semis since 2023. "New buys today after **trimming 120% gains on KEY and PNC**: **INBK**, trading at 5x NTM earnings, 0.5x book, 0.19 PEG. ZERO office loan exposure. Insider buys in $18-19, now $20. The last time there were insider buys for INBK was at $10 during SVB crisis, it eventually went up to $40. I bought at $10, sold at $40, now rebuy at $20. Price target to 1x TBV of $39. 50k position." Took profits, KEY/PNC only +3%, INBK +12%

Ahamadrayasbaboon

Thanks. Also for $ARCC, tell me about free cash flow please, and what are the forward and trailing price/earnings ratios and PEG ratio? 

_hiddenscout

Valuation is too expensive for me. [https://stockanalysis.com/stocks/avav/statistics/](https://stockanalysis.com/stocks/avav/statistics/) [https://finviz.com/quote.ashx?t=AVAV&p=d](https://finviz.com/quote.ashx?t=AVAV&p=d) PEG is 2.6 or 3, and I think they are still negative EPS. ROIC is negative too. It's a cool idea, but market is buying because it's a pure play and thinking it's a place to go, but buying a part of this business doesn't make sense to me personally. I might be miss the rally, but on the flip side, I avoid losing 43% in like 6months.