Why don't you use a peg ratio?
••
1Année
@MiIliardenmehling I'll explain my part 3 in a post soon - but that's also the part that's still the fuzziest. Why do you use the PEG? Since I mainly focus on cash flow and the PEG is based on future forecasts, which I tend to include less in my selection, I did not include it for now.
••
@Tom_quality_investor it makes shares comparable with each other. That was a game changer for me at the time.
••
1Année
@MiIliardenmehling Stocks in the same industry certainly, yet the usual PEG is based on analyst opinions, or did you calculate it with your own growth forecasts or past growth? Where did you get the PEG from? My "market implied fcf growth" does something similar. I compare the growth of the past years with the necessary growth to reach the S&P 500 market P/E in 5 years.
••