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Nintendo Co. Ltd. Message Board

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  • claudiman31 claudiman31 Dec 21, 2007 2:40 PM Flag

    Big $$$ looking to buy NTDOY.pk

    <<<If your so smart why didn't you give an answer rather than a high and mighty comment? The P/E is not really as important as many make it out to be anyway. Most companies with growth rates like NTDOY.pk have a P/E higher than 100.


    It's spelled "you're" and I actually posted a topic titled "Investor Relations" so people can actually follow a link and do the homework. You say the P/E isn't that important because of the growth rate. Um, how do you know the growth rate if you don't even know the P/E? I am holding on to my NTDOY shares. I just think you would be better off doing a little bit of DD before hyping up the stock.

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    • Well one metric that combines the two is the PEG.

      Companies are measured on growth, and P/E measures how much they currently cost. PEG is basically P/E divided by growth rate. For example, if you take the current P/E, and divide it by next year's estimated growth you'll get a ratio.

      Anything over 2 is generally over valued, anything under 1 is usually a screaming steal. So a P/E of 30, with estimated growth of 15% is a PEG of 2.0. Anyhow that's just what Cramer says.

      The numbers to keep in mind aren't the past numbers, its the ones coming up since Wall Street loves growth.

 
NTDOY
21.00-0.30(-1.41%)12:04 PMEDT