3 ms·
General point about P/E and P/(E * G) ratios: - P is at a snapshot in time, but - E is over a period of time (can be short/long, past/predicted-future) - G (
by zhyder 16y ago
General point about P/E and P/(E * G) ratios:
- P is at a snapshot in time, but
- E is over a period of time (can be short/long, past/predicted-future)
- G (growth) is over a period of time (can be short/long, past/predicted-future)
G is usually the predicted value, and -as you'd expect- predictions can vary a lot, making PEG vary wildly.
The G used in this article is one determined by some unnamed analysts, but the market thinks the analysts are wrong by a factor of 2.