Analyst consensus PEG
factor.formula
Analyst consensus PEG calculation formula:
Among them, the price-to-earnings ratio (P/E) calculation formula is:
Expected net profit growth rate calculation formula:
in:
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The price-to-earnings ratio indicates the price that investors are willing to pay for each unit of a company's earnings. The price-to-earnings ratio used here is calculated based on analysts' consensus earnings expectations for the next year.
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The market price of a company's stock on the current trading day.
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The total market value of all the company's current shares, equal to the current share price multiplied by the total share capital.
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The average analyst forecast for a company's net income per share for the coming year.
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The average forecast of analysts' net profit for the company in the coming year. FY1 means the first fiscal year in the future.
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The average forecast of the company's net profit growth rate in the next year by analysts. The growth rate of the second fiscal year relative to the first fiscal year is used here.
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The average analyst forecast of the company's net profit for the second fiscal year ahead. FY2 means the second fiscal year ahead.
factor.explanation
Analyst consensus net profit is based on the forecasts of the company's future earnings in the research reports released by multiple institutions (such as securities companies, investment banks, etc.), and is obtained after weighted average processing. Different data providers (such as Wind, Chaoyang Yongshou, Dongfang Securities, etc.) may use different weighting methods, including but not limited to:
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Arithmetic mean (Wind consensus): Simply calculate the average of all analyst forecasts.
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Time and institution double weighting (Chaoyang Yongshou): Weighted according to the release time of the forecast report and the reputation of the issuing institution, giving more weight to the forecasts of recent and more authoritative institutions.
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Weighted by forecast accuracy (Oriental Securities): Weighted according to the accuracy of analysts' past forecasts, giving more weight to the forecasts of analysts with high forecast accuracy.
Since different weighting methods may lead to different PEG values, when using this factor for investment decisions, you should pay attention to the data source and weighting method. When using the consensus PEG, you should pay attention to the risk of deviation from analysts' expectations and the uncertainty of expectations caused by changes in the company's operating environment. In addition, the applicability of PEG also depends on the company's growth stage. In mature companies, high growth rates may be difficult to maintain, resulting in the failure of the PEG factor.