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REFS definition of ‘growth’ companies

A PEG is only calculated where a company meets all of the following criteria:

helpfile00000219.gif there must be broker forecasts available

helpfile00000220.gif there must be continuous growth in normalised EPS for the latest four

consecutive periods, including any forecasts

helpfile00000221.gif companies in Building & Construction, Building Materials & Merchants and

Vehicle Distributors, which are all highly cyclical sectors, may not have

incurred a loss or suffered an EPS reversal in any of the last five years of

reported results

helpfile00000222.gif each of the last five normalised results must be positive, i.e. none may show a

loss

helpfile00000223.gif where four periods of growth follow a previous setback, it must have achieved,

or be expected to achieve, its highest normalised EPS (whether historic or

forecast) in the latest period out of the last six.

For recently listed shares, the consecutive periods may include figures based on information taken from listing prospectuses.

(NOTE: PEGs are not calculated for companies in the Property sector.)


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