PEG, pe ratio divided by earnings growth rate, is a good indicator; you can add in dividend yield for income stocks. A PEG of 1 would be fairly valued; a PEG up to 2 may still be suitable for large, stable dividend paying stocks. With regard to market cap--relate the number to Price/Sales, the lower the better. IMO
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Does anyone know of any good formulas that use fundamentals to determine if the market cap of a stock is over or under valued??
