
In
this table, the prospective PER is the key statistic. All
the companies selected are growth companies within the REFS
definition; they therefore also have a PEG. Usually a high
PER indicates that prospects for future EPS growth are excellent.
Too high a PER can be a negative, especially if it is accompanied
by a higher than average PEG. In such a case, the share
price is demanding toomuch for future growth. However, sometimes
a higher than average PER (and PEG) can be justified by
the consistency of past growth and the reliability of future
growth (which may also be accelerating).
To the right of the PER column, 5-year and 3-year EPS growth
rates enable future growth to be compared with the past
record. The PEG follows as a check on the price that is
being demanded for that growth. The dividend yield is always
of interest and the last column has been allocated to ROCE,
always a key statistic for growth companies.