Graph

Orange Line – What does this represent?

The primary valuation reference line is the orange line on the graph which is produced based on three widely accepted formulas for valuing a business. F.A.S.T. Graphs™ automatically utilizes the appropriate formula which is driven by the earnings growth rates achieved by the company over whatever timeframe is being drawn. A more detailed explanation can …

What does the blue normal P/E ratio line tell me?

The blue normal P/E ratio line is telling you what valuation the market has normally applied to the stock for the period that you are graphing.  It does not necessarily indicate that the stock is fairly valued or undervalued, instead, it provides information regarding how the market had most commonly valued the stock over the …

GDF – What does this stand for?

GDF is an acronym identifying that the Graham Dodd Formula was utilized, the P/E = G recognizes the formula that Peter Lynch presented in his book One Up On Wall Street.  The earnings growth rate calculation, whether it’s “Adjusted (Operating) Earnings or any of the other metrics is the simple compound annual growth rate formula …