The Value Of A Brand
Brand name of a product has certain value to a company. How do we value a brand and how does it affect the fair value of a common stock? There is no definite way of doing it since a brand is worth more to some than to other people.
The Folly of PEG Ratio
Common sense dictates that a stock with higher growth rate should be valued at a higher P/E ratio. There is nothing wrong with that. But using a simple PEG ratio of one as a fair value of a common stock is simply wrong.