Something amazing happened to the market in the last year

A heat map of PEG multiples reveals dramatic changes in leading technology stocks, due to price drops and accelerated growth.

By the SpyStocks desk · 4mo ago · 1 min read

Something amazing happened to the market in the last year...

Pay close attention to the attached heat map:

Afterward, compare it to the map in the tagged post!

Many stocks turned from burgundy red to green.

This is the market's true valuation map, the PEG multiples map, which adjusts the price for companies' real growth.

Note the aggressive changes:

Nvidia dropped from a multiple of almost 40 to 0.4 (!)

Micron dropped from a multiple of 18 to a multiple of 0.04 (!)

AMD dropped from a multiple of almost 100 to a multiple of 0.42 (!)

Broadcom also dropped from a multiple of 92 to 0.42 (!)

Microsoft dropped from a multiple of 32 to a multiple of 1.08 (!)

How does such a thing happen?!

It's very simple -

When stock prices fall, but growth actually accelerates, the PEG multiple drops dramatically.

Justified?

This is exactly what is happening in the market now.

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