tag:blogger.com,1999:blog-2884768844412347068.post6305853711680944985..comments2024-03-15T17:29:59.985+08:00Comments on myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes): PE ratio, PEG and EPS Growth ratesinvestbullbearhttp://www.blogger.com/profile/08012146712936776873noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2884768844412347068.post-39183692923884340152010-05-02T19:17:53.831+08:002010-05-02T19:17:53.831+08:00Hi,
I just posted the following in my blog www.Pol...Hi,<br />I just posted the following in my blog www.PoliteMarket.blogspot.com<br /><br />I hope it can be used in your blog as an investment tool. Thanks<br /><br /><br />Post.......<br />Rather than just rely on PE ratio, or now the trend is PEG ratio, we also need to evaluate gearing and dividend yield. I try to make things easy for you all to remember, so I come out PEGGY method to evaluate a company.<br /><br />PE G G Y<br /><br />PE is PE ratio. The lower the better.<br />G is Growth, expected long term growth rate eg 15%. The higher the better<br />G is gearing, the lower the better, best is net cash<br />Y is yield, ie dividend yield. The higher the better<br /><br />All are important. More than 10 years ago I just look at PE, which is not enough.<br />Now people like to use PEG, that is using PE ratio divided by growth rate. The lower the better. But also not enough. Many don't bother about gearing. <br />Some investor just look at Dividend Yield.<br /><br />You need to consider all. So, I advise you to use my PEGGY method<br />Just remember PEGGY, easy right.<br /><br />If your remisier ask you to buy Genting International Ltd Singapore or IOI Corp, you can start asking him, what is the PE? Then ask him what is expected growth rate? How about gearing? Is dividend yield high?PEGGY Methodhttps://www.blogger.com/profile/12084740690264532704noreply@blogger.com