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All good points. I guess PE is better for steady-state businesses like utilities. But even with PEG, $NVDA is quite high - I get 16, but I much prefer this to
by FredPret 3y ago
All good points.
I guess PE is better for steady-state businesses like utilities. But even with PEG, $NVDA is quite high - I get 16, but I much prefer this to be below 1.
None of this means they're not a good buy, just that it would've been really fantastic to already be an owner.
- AnotherGoodName 3y agoFor that PEG did you calculate quarterly 8% = 36% (after compounding) You should get a PEG <1. (25/36)
- FredPret 3y agoI couldn't find a consistent definition for it so I used the past five years. That's another factor that would weigh against fast-growing tech companies. Maybe the best portfolio would be one part proven, stable value investments picked using measures like PE and PEG, and one part tech companies that are chosen for future profit potential, which you can't really measure or forecast so much as make an educated guess.