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Highest PERs for Growth Rates

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.


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