I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Things missed here: EPS is dimensionally $'s /share (net income/outstanding shares). Additionally-- it should be pointed out that company A and B are both considered to be within the same part of the market... Target vs Walmart, Apple vs Microsoft, comparing Target Vs. Microsoft off of P/E and determining if one is "undervalued" is utterly asinine and a waste of time. Certain parts of the market tend to have a range for expected P/Es; which brings me to the point that they both could be considered undervalued or overvalued and you shouldnt make it relative to each other, but to the industry expectations in which they fall. This is how analyst and buys make the decision of being ok with a particular P/E or not. Doesnt matter if its 20 and 10 if the industries p/e is lower than 10... by standard they both over valued. Why would you buy either if that's the only thesis?
PEG ratio is a very good indicator of an undervalue stock, usually I like to see that is below 1. However I have 3 metrics I like to analize. -Current/quick ratio -Debt to equity ratio -Book value: 2 or less (except technology sector)
I feel it is more reasonable to calculate PE/(1+EGR), because that gives an estimate of the future PE. In the example, B is still relatively undervalued, because if the stock prices don't change, B still has a lower PE.
What does a negative PEG ratio imply? For example, I'm looking at a company with a trailing P/E ratio of 21, and a forward P/E ratio of 19. Yet, the PEG is -25.27. Doesn't the lower forward P/E ratio imply anticipated earnings growth? Why is the PEG ratio negative?
The stock could be oversold for example, lowering the p/e. But maybe it's over sold because earnings are decreasing (again for example) Also I am not (yet) an expert just my 2 cents
@@cheshstyles Maybe I didn't write my question clearly. I'm curious how a stock can have a negative PEG ratio if the lower forward P/E implies earnings growth (because both trailing and forward P/Es use the current stock price). So, ignoring whether or not a stock is oversold, how can a PEG ratio be negative if the market is assuming earnings growth and earnings are currently positive?
@@TXLionHeart p/e is price to earnings. If the price and earnings both drop, but the earnings drop more, then the p/e ratio drops. If the earnings growth is negative, the output of the peg would be negative
Let's say the stock costs 20 and earns 1 per share. P/E is 20. Then the price drops to 9 and the forward earnings is .5. Your p/e is 18 (9÷.5). If your growth is negative (drops from 1 to .5) your peg would be negative
It is exactly what you wrote & it makes totally sense. Think about it. Paying a P/E of 20 (with 20% EGR) is much better than paying a P/E of 100 (!!!) with 5% EGR. Conclusion: The lower the PEG, the better (or the cheaper). Does that make sense to you? Do you have any other questions?
Misunderstood your Q. Doesnt matter whether u see 20% as 20 or 0.2 in this case. Relation to each other will remain the same. One thing is important, though. STAY CONSISTENT.
You're supposed to take growth and multiply it by 100. He skipped that for some reason but I'm studying for the CPA exam and that's the official formula. Otherwise I would have been lost too.
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
This guy saving every part of my life
Things missed here: EPS is dimensionally $'s /share (net income/outstanding shares). Additionally-- it should be pointed out that company A and B are both considered to be within the same part of the market... Target vs Walmart, Apple vs Microsoft, comparing Target Vs. Microsoft off of P/E and determining if one is "undervalued" is utterly asinine and a waste of time. Certain parts of the market tend to have a range for expected P/Es; which brings me to the point that they both could be considered undervalued or overvalued and you shouldnt make it relative to each other, but to the industry expectations in which they fall. This is how analyst and buys make the decision of being ok with a particular P/E or not. Doesnt matter if its 20 and 10 if the industries p/e is lower than 10... by standard they both over valued. Why would you buy either if that's the only thesis?
Clear and simple!
PEG ratio is a very good indicator of an undervalue stock, usually I like to see that is below 1.
However I have 3 metrics I like to analize.
-Current/quick ratio
-Debt to equity ratio
-Book value: 2 or less (except technology sector)
Thanks for the vid. Your explanation is clear and concise.
I feel it is more reasonable to calculate PE/(1+EGR), because that gives an estimate of the future PE. In the example, B is still relatively undervalued, because if the stock prices don't change, B still has a lower PE.
Best explanation! Thank you
Nice and simple explanation. Thank you!!!
where do you get the growth rate
Is EGR the comparison from last two years, or is it an expectation for the next year ?
What does a negative PEG ratio imply?
For example, I'm looking at a company with a trailing P/E ratio of 21, and a forward P/E ratio of 19. Yet, the PEG is -25.27. Doesn't the lower forward P/E ratio imply anticipated earnings growth? Why is the PEG ratio negative?
Could be negative growth
The stock could be oversold for example, lowering the p/e. But maybe it's over sold because earnings are decreasing (again for example)
Also I am not (yet) an expert just my 2 cents
@@cheshstyles Maybe I didn't write my question clearly. I'm curious how a stock can have a negative PEG ratio if the lower forward P/E implies earnings growth (because both trailing and forward P/Es use the current stock price).
So, ignoring whether or not a stock is oversold, how can a PEG ratio be negative if the market is assuming earnings growth and earnings are currently positive?
@@TXLionHeart p/e is price to earnings. If the price and earnings both drop, but the earnings drop more, then the p/e ratio drops. If the earnings growth is negative, the output of the peg would be negative
Let's say the stock costs 20 and earns 1 per share. P/E is 20. Then the price drops to 9 and the forward earnings is .5. Your p/e is 18 (9÷.5). If your growth is negative (drops from 1 to .5) your peg would be negative
my name jeff this helped so much thanka yu
Wtf
You go Jeff don't ever let anyone get you down man I believe in you!
Nice comparison
Awsome content, Thank you so much
What is high and what is low? Is 100 high or 20 ?
Great video, thanks!!
Bro how to calculate PEG ratio for an index?
at 3:12 "20 divided by 20% =1" No, it doesn't. If growth rate is zero, then PEG would be infinite.
I spent far too long trying to come up with a pegging joke and all I got for it is this
Been there done that 😢
Hello thanks where are you from?sir
How do you put this into google sheets?
By doing it yourself
This is confusing.. 20/20% supposed to be 100 and 100/5% is 200 no?🤔
I was confused as well, but apparently all the data indicate that we should ignore the % in the caculation.
@@qwerty112934 because its always multiplied by 100 when you calculate a percentage of something. so here its the other way around.
It is exactly what you wrote & it makes totally sense. Think about it.
Paying a P/E of 20 (with 20% EGR) is much better than paying a P/E of 100 (!!!) with 5% EGR.
Conclusion: The lower the PEG, the better (or the cheaper).
Does that make sense to you? Do you have any other questions?
Misunderstood your Q.
Doesnt matter whether u see 20% as 20 or 0.2 in this case.
Relation to each other will remain the same. One thing is important, though. STAY CONSISTENT.
You're supposed to take growth and multiply it by 100. He skipped that for some reason but I'm studying for the CPA exam and that's the official formula. Otherwise I would have been lost too.
He divided company A by 20% and company B by only 5%
Where did he com up with those two seemingly random and very different percentages?
I’m long Meta, FedEx and Tesla 💰😁
Weighted PEGROCI Strategy:
PEfair ÷ 0.5*[ Gni÷(1+D/E) + ROCI ] = 1
Thank you
TY!
Cheers
who tf disliked??
Only the 1% of people watch these type of videos