PEG ratioOne of the more useful measures for Value investors is the P/ E to growth ratio
I.E. if a stock has a P/E ratio of 10 and a 10% growth in earnings rate then it has a PEG rate of 1.0 and has traditionally been considered fairly valued.
Well someone decided to throw that measure right out the window. The new religion has been chase the money ( just like a pup chasing his tail ) YET the new religion has led to some very dark corners as wiser investors are just starting to realize. What is the peg for Bitcoin which pays zero interest?
Infinity is the answer.
So what is the current PEG ratio for VET 0.06 is the answer (P/E of 3.4 divided by 54% growth rate over the last 3 years)
So what share price gets us to a PEG ratio of 1.0 ?
Hold on to your beer glass $23/ .06 = $ 383
How crazy is that ? Dunno, I have surely seen a lot crazier the last decade or so !!
VET 23.35 -0.6899 -2.87% : Vermilion Energy Inc - MSN Money