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Time Details
2025-08-11
16:04
PEG Ratio < 1.2: Practical GARP Stock Screen for Traders to Evaluate Crypto-Exposed Equities

According to @QCompounding, a PEG ratio below 1.2 signals attractive value relative to growth by balancing price and growth rate fairly (source: Compounding Quality on X, Aug 11, 2025). PEG is calculated as the price-to-earnings (P/E) ratio divided by the annual earnings per share (EPS) growth rate and is widely used to compare valuation across growth profiles (source: Investopedia, PEG Ratio explainer). Because PEG can be distorted when EPS growth is negative or highly volatile, traders should avoid using it in those cases or rely on normalized or forward growth estimates for a fairer comparison (source: Investopedia, PEG Ratio limitations and usage). Applying a PEG < 1.2 screen can help evaluate crypto-exposed equities—such as Coinbase (COIN), a cryptocurrency exchange (source: Coinbase Global, Inc., 2024 Form 10-K, Business overview), MicroStrategy (MSTR), a company that holds significant Bitcoin (BTC) as part of its corporate strategy (source: MicroStrategy Investor Relations, Bitcoin strategy overview, 2024), and Marathon Digital (MARA), a Bitcoin mining company (source: Marathon Digital Holdings, Company overview)—by relating their valuations to expected EPS growth (source: Investopedia, PEG Ratio usage).

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