REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
|
|
 |
PEG
(price-earnings growth factor)
The PEG factor
measures the relative cost of earnings growth at the current
share price. It is therefore only relevant to those companies
which can truly be considered to have growth shares, as defined
in REFS
definition of 'growth' companies.
The PEG factor
is simply the price-earnings ratio (PER) divided by the earnings
growth rate (GR), as follows:
PER
------ =
PEG FACTOR
GR
The calculation
of each element is explained under separate headings (see above
for ‘PER’ and below for ‘GR’).
|
|
|
