PEG
Posted: March 8th, 2019, 1:13 pm
Hi folks,
I just wanted to make a quick post about PEG. Apologies for my brevity, but am currently on my lunch break. So as I'm already aware, PEG is the ratio of P/E over EPS growth. But what I'm unclear over is the EPS growth figure to use....should one use the CAGR of EPS over the past 5 years or so, or just the growth over the last year.
As an example I've got these figures for Bodycote Plc (BOY) just quickly grabbed from here: http://financials.morningstar.com/ratio ... ture=en-US
So as can be seen the PEG ratio, differs from either suggesting BOY are "not that cheap" to "an amazing bargain". So what do people here think? What's the low down on PEG calculation?
Out of interest my curiosity was aroused as, I was looking at the "sharesmagazine" site at something unrelated, and then ended up on https://www.sharesmagazine.co.uk/shares/share/BOY and upon seeing the proclaimed low PEG for BOY according to this site, I decided to investigate further.
All comments appreciated,
Matt
I just wanted to make a quick post about PEG. Apologies for my brevity, but am currently on my lunch break. So as I'm already aware, PEG is the ratio of P/E over EPS growth. But what I'm unclear over is the EPS growth figure to use....should one use the CAGR of EPS over the past 5 years or so, or just the growth over the last year.
As an example I've got these figures for Bodycote Plc (BOY) just quickly grabbed from here: http://financials.morningstar.com/ratio ... ture=en-US
So as can be seen the PEG ratio, differs from either suggesting BOY are "not that cheap" to "an amazing bargain". So what do people here think? What's the low down on PEG calculation?
Out of interest my curiosity was aroused as, I was looking at the "sharesmagazine" site at something unrelated, and then ended up on https://www.sharesmagazine.co.uk/shares/share/BOY and upon seeing the proclaimed low PEG for BOY according to this site, I decided to investigate further.
All comments appreciated,
Matt