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QuestionsCategory: Valuation QuadrantPrice to Sales to fair value
Duvell Boo asked 1 year ago

hi Victor,
is it possible to use Price-to-Sales to calculate fair value?

2 Answers
Duvell Boo answered 1 year ago

the same goes for PEG, possible to calculate fair value?

Victor Chng answered 1 year ago

Hi Duvell,
 
Yes, you can use P/S to calculate fair value but I don;t really recommend it as the figure may be too optimistic. 
 
As for PEG, you use it as a gauge but fair value can;t be calculate as the growth part is subjective to individual.