Formula
PEG =
P/E Ratio / EBITDA Growth Rate (5-year average)
Telik, Inc. peg Calculation
* All numbers are in millions except for per share dataTelik, Inc. Annual Data
| Dec99 | Dec00 | Dec01 | Dec02 | Dec03 | Dec04 | Dec05 |
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| peg |
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Telik, Inc. Quarterly Data
| Dec02 | Mar03 | Jun03 | Sep03 | Dec03 | Mar04 | Jun04 | Sep04 | Dec04 | Mar05 |
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| peg |
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Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Related Terms
P/E Ratio,
Peter Lynch Fair Value* All numbers are in millions except for per share dataTelik, Inc. Annual Data
| Dec99 | Dec00 | Dec01 | Dec02 | Dec03 | Dec04 | Dec05 |
|---|
| peg |
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Telik, Inc. Quarterly Data
| Dec02 | Mar03 | Jun03 | Sep03 | Dec03 | Mar04 | Jun04 | Sep04 | Dec04 | Mar05 |
|---|
| peg |
|---|