Quote:
quote:Originally posted by hairdresser
I think you missed the point, P/E is not good for valuing high growth stocks.
With RAK the high P/E may make the SP appear overvaled, but when you consider the explosive growth of RAK's markets it may not be as over valued as it appears.
There are not many growth stocks in NZ with solid markets and customers and high growth for a top 30 company in NZ is quite unique.
Its a bit of a moot point anyway as there is little in the way of coverage of RAK and what I have seen reported has just been a recycling of what the company has said anyway.
The ref to MSFT [and others] was for illustrative purposes only. You would hardly categorise MSFT as a high growth stock ie forecast 5 year EG of c30% is good but not really explosive. NB trailing PE of 22 forward PE of 18.
My apologies if I appear to you to have missed your point, Hairdresser, but my posting was probably a hasty reaction to your own rather hasty and seemingly superior conclusion that "no-one seemed to have heard of the use of Price/Earnings Growth (PEG) ratios". And I thought that you were trying to make the point that the PEG ratios indicated that RAK was still undervalued in comparison with giant, established enterprises such as Microsoft.