I believe the following argumentation from the article in posting 3435 is nonsense:
"Hence, I want to offer the reader a supplementary valuation scenario. Let's assume a 15% growth rate and a terminal PE ratio of 15 as well. This would imply that the RKUNY would be trading at a PEG ratio of 1, which is a good proxy for fair value. With these inputs, my model indicates a fair value of $14.99 per share for Rakuten."
Rakuten has a P/E which is a lot lower than 15 and competitors has a lot higher PEG's than 1. |