I really appreciate and think it's really cool that you combine several evaluating methods, because that's exactly what's missing when you look at one metric - it doesn't show all the picture. I am a big fan of Peter Lynch and was drawing graphs myself - when I came across your tool, it was just what I was doing myself. But I was using just one metric, while you use a combination. Awesome job!
Really insightful Chuck!!! Rational expectations can make you very rich long term! Can you put a video about differences between features for $15 subscription and the one with $48.
Yadnesh, this tells you about the differences between Basic and Premium: www.fastgraphs.com/what-are-the-main-differences-between-basic-and-premium/ Also check out our documentation tab of the website, this tells you all about the tool: www.fastgraphs.com/documentation/
Thank you Chuck! Please allow me to ask a question. I saw your video with Paul and I am thinking of getting a membership but I'm not sure if I'll use premium fully :) is there any video which quantify the differences between the two accounts?
I noticed that when the growth rate moves into negative territory, the multiple snaps back to 15. This creates a discontinuity between slightly positive earnings and slightly negative earnings, where the valuation line moves dramatically. Why would a company that is barely growing earnings at 0.05% (currently valued at around 8.5x from GDF) be worth *less* than a company whose earnings are (barely) shrinking at -0.05%? (currently valued at 15x on fastgraphs). I would think for negative earnings growth you should hold constant at 8.5x or even go lower, not higher.
The orange line on the FAST Graph is a valuation reference line not a dictum. FAST is an acronym for fundamentals analyzer software tool. It is designed to reveal valuation so it can be analyzed. It will draw multiples lower than a 15 PE under certain low growth scenarios. On the other hand, even a no growth investment deserves a multiple of earnings greater than one. For example, a 5% bond trades at 20 times interest even though there is no growth. In conclusion, use the tool to analyze and evaluate. Remember, it is a tool and like all tools only as valuable as the skill of the individual utilizing it. I hope that helps. Regards, Chuck
May i ask: what is the difference between say an average p/e over a certain period of time and the normalized type of P/E we see in Fast Graphs. I'd like to understand it's advantages and how it's calculated please. Thank you.
Francisco: normal P/E ratio on FG is in fact a trimmed average with 1 high and 1 low excluded. In simple terms, but illustrates how the market has tended to value a given stock over a given time. Importantly, it is a dynamic calculation that changes when different time periods are drawn. Therefore, it may not have much meaning if the valuation has tended in one direction over time. In other words, if a stock is being perennially overvalued or undervalued, it simply measures that for the analyst to evaluate. However, it does not necessarily reflect the intrinsic value only recent market value. At its core it provides the user a valuation reference that can be used to make rational judgments upon.
@@FASTgraphs Thank you very much. So, the orange line for intrinsic value is actually the most important line of the graphic, even if some companies tend to sell above it, correct? Thanks again
@@franciscomachado364 technically yes for most companies. However, there are exceptions to every rule. In some cases the blue normal P/E ratio line will be more relevant. Valuation IS A PUZZLE and it is important to have all the pieces in place to draw the perfect picture. Which of course, is impossible.
@@AllenKrell Cheap is relative. For a 22 year old with only a part time job, $48 a month is definitely not cheap lol. But yea, I am glad for the software aswell and don´t mind the price.
@@daneilpetersen6572 this is why we offer a basic subscription at approximately $15 a month. It does not have all the features of the premium version. However, it is very comprehensive considering its low price.
I really appreciate and think it's really cool that you combine several evaluating methods, because that's exactly what's missing when you look at one metric - it doesn't show all the picture. I am a big fan of Peter Lynch and was drawing graphs myself - when I came across your tool, it was just what I was doing myself. But I was using just one metric, while you use a combination. Awesome job!
Excellent! Thanks for covering this topic, and going round and round looking at it forwards and backwards. You. Are. the. *MAN*
THANK YOU, Chuck, for this excellent presentation. It's quite helpful and among your finest yet!
Thank you for going through the Forecasting calculators - They have been a mystery to me other than realizing they give different results.
im lost after 5 minutos talk... but i love you Chuck, you are fantastic.
Awesome explanations - thank, Chuck!
Really insightful Chuck!!! Rational expectations can make you very rich long term! Can you put a video about differences between features for $15 subscription and the one with $48.
Yadnesh, this tells you about the differences between Basic and Premium: www.fastgraphs.com/what-are-the-main-differences-between-basic-and-premium/
Also check out our documentation tab of the website, this tells you all about the tool: www.fastgraphs.com/documentation/
Thank you Chuck.
Thank you for everything!
How do you feel about NYSE:TDY?
Thank you Chuck! Please allow me to ask a question. I saw your video with Paul and I am thinking of getting a membership but I'm not sure if I'll use premium fully :) is there any video which quantify the differences between the two accounts?
Thanks Chuck - Pete is part of the Future...
I noticed that when the growth rate moves into negative territory, the multiple snaps back to 15. This creates a discontinuity between slightly positive earnings and slightly negative earnings, where the valuation line moves dramatically. Why would a company that is barely growing earnings at 0.05% (currently valued at around 8.5x from GDF) be worth *less* than a company whose earnings are (barely) shrinking at -0.05%? (currently valued at 15x on fastgraphs). I would think for negative earnings growth you should hold constant at 8.5x or even go lower, not higher.
The orange line on the FAST Graph is a valuation reference line not a dictum. FAST is an acronym for fundamentals analyzer software tool. It is designed to reveal valuation so it can be analyzed. It will draw multiples lower than a 15 PE under certain low growth scenarios. On the other hand, even a no growth investment deserves a multiple of earnings greater than one. For example, a 5% bond trades at 20 times interest even though there is no growth. In conclusion, use the tool to analyze and evaluate. Remember, it is a tool and like all tools only as valuable as the skill of the individual utilizing it. I hope that helps. Regards, Chuck
Would you do a review of your %returns per year using fast graph? Curious about. As far as I Saw, seems a very interesting tool. Thanks
lol
Clear
Chuck could you analyze GD, RTX, LMT AND LHX and using FastGraphs help me make a decision which one to buy ... please? :-)
Ummm...
th-cam.com/video/yTnKUECVAGM/w-d-xo.html
Arijit: The defense and aerospace sector is coming tomorrow- Wednesday, February 24.
@@puppypuppy1448 I was hoping Chuck would use the FunGraph & all other tools to nail down which is a better buy
May i ask: what is the difference between say an average p/e over a certain period of time and the normalized type of P/E we see in Fast Graphs. I'd like to understand it's advantages and how it's calculated please. Thank you.
Francisco: normal P/E ratio on FG is in fact a trimmed average with 1 high and 1 low excluded. In simple terms, but illustrates how the market has tended to value a given stock over a given time. Importantly, it is a dynamic calculation that changes when different time periods are drawn. Therefore, it may not have much meaning if the valuation has tended in one direction over time. In other words, if a stock is being perennially overvalued or undervalued, it simply measures that for the analyst to evaluate. However, it does not necessarily reflect the intrinsic value only recent market value. At its core it provides the user a valuation reference that can be used to make rational judgments upon.
@@FASTgraphs Thank you very much. So, the orange line for intrinsic value is actually the most important line of the graphic, even if some companies tend to sell above it, correct? Thanks again
@@franciscomachado364 technically yes for most companies. However, there are exceptions to every rule. In some cases the blue normal P/E ratio line will be more relevant. Valuation IS A PUZZLE and it is important to have all the pieces in place to draw the perfect picture. Which of course, is impossible.
Fast graph is amazing but tooo expensive
It is expensive but honestly I think it is worth it. Such an incredible tool
I feel it has helped me avoid a lot of lemons
I consider it cheap, kept me from making mistakes totaling 10s of thousands
@@AllenKrell Cheap is relative. For a 22 year old with only a part time job, $48 a month is definitely not cheap lol. But yea, I am glad for the software aswell and don´t mind the price.
@@daneilpetersen6572 this is why we offer a basic subscription at approximately $15 a month. It does not have all the features of the premium version. However, it is very comprehensive considering its low price.