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WallStTitan @BullMarketBoss on x 6906 followers
Created: 2025-07-27 00:53:39 UTC
Just like people, companies go through life cycles 👇
R&D (just an idea/concept) to Launch (hello world) to Hypergrowth (rockets 🚀) to Maturity (steady cash flow) to Decline (uh-oh… reinvention or fade away).
As investors, understanding where a company sits in that cycle helps you interpret its valuation.
P/E ratio (Price-to-Earnings) gets all the attention. It’s useful and I like it but it’s only a part of it.
Enter PEG: Price/Earnings to Growth
PEG shows you if a stock’s price is fair relative to its growth rate. A high P/E might be justified if growth is strong and PEG helps you see that more clearly.
Always compare PEG to similar companies in the same sector. A XXX PEG might be expensive for a slow growing utility, but cheap for a fast scaling AI firm.
Bottom line: P/E tells you what you’re paying. PEG tells you if it’s worth it.
Smart investors look at both
XXX engagements
