This FAQ covers a handful of questions regarding Price, Price/Earnings Ratio and Dividend Analysis (section 3) of the SSG form in Toolkit 6.
Q: Why do Current Price, 52-Week High, and 52-Week Low all show the number that is in 2c (Debt to Equity)
A: This seems to happen if data is being entered by hand, and there are no recent quarterly EPS entries.
Where Toolkit used to show just prices at the top of section 3, it was updated to also show (P/E) figures. This change also meant a change in how the program fills in the three boxes. Instead of simply reading the price from a file, it now goes through a formula, the result of which is the price, and the corresponding (P/E) figure.
Here's how you can get the prices to show up:
Open the SSG, and while you're on the front page, click the Data button, then click the Quarterly Data tab.
Fill in an EPS figure for the latest quarter, and click OK.
Save the SSG, and then go to the 2nd page.
Q: Why don't the historical high and low prices in the SSG match the historical high and low prices from other sources.
A: The most common reason for this is that most other sources that publish a yearly high and low for a stock focus on the calendar year, while the historical high and low prices in section 3 are specifically for a company's fiscal year. While some companies keep their fiscal year according to the calendar year, there are some (like Apple, whose fiscal year ends in September) who do not.
This is as intended, and no changes or adjustments need to be made.
Q: What is PEG, and how is it calculated?
A: The PEG (Price Earnings Growth) is actually built from two other calculated numbers, the P/E Ratio (PE), and the Earnings Per Share (EPS)
In Toolkit, the PEG Ratio is found by taking the PROJECTED PE, and dividing by the projected 5-year EPS growth rate.
(Projected PE / projected 5-yr EPS growth rate)
Projected PE is (Current Price / next 4 quarters' EPS)
Generally speaking, PEG is a quick way to tell if a company is under or over-valued based on what investors are paying vs. what the company is earning.
While there's no exact "best" number, the following can be used as a guideline:
PEG higher than 1.0 is less desirable because the price is growing faster than the earnings
PEG of 1 is OK, since it means Price and Earnings are growing at close to the same rate.
PEG lower than one is good, since it means Earnings are growing faster than Price.