Markov Chains & PEGY Analysis

At MarkovPegy, our approach combines proven mathematical frameworks with practical market insight. We draw on advanced modeling techniques — including Markov chain processes and PEGY-based valuation analysis — to create a structured view of potential market movements.

Markov Chains: Modeling Probabilities in Motion

Financial markets are not static — they move from one state to another in ways that often appear unpredictable.

• A Markov chain is a mathematical system that models these state changes by examining probabilities rather than absolutes.

• Instead of trying to “predict” the market outright, this method evaluates the likelihood of different future scenarios based on current conditions.

• This helps us frame risk and opportunity as evolving probabilities, not fixed outcomes.

PEGY Analysis: Balancing Growth with Value

Traditional valuation metrics often stop at the P/E ratio. PEGY takes the analysis further by factoring in both earnings growth and dividends (yield) to create a more balanced perspective.

• P/E (Price-to-Earnings) shows how a stock is valued relative to its earnings.

• PEG (Price-to-Earnings-to-Growth) adjusts for expected earnings growth.

• PEGY (Price-to-Earnings-to-Growth-and-Yield) brings dividends into the equation — recognizing that investors value both appreciation and income.

By combining growth and yield considerations, PEGY helps highlight companies that offer potential upside without ignoring fundamentals.

Why It Matters

By integrating the probabilistic structure of Markov chains with the value-oriented lens of PEGY analysis, our system is designed to:

• Identify patterns that traditional analysis might overlook

• Balance growth potential with underlying risk

• Provide a clearer, more disciplined framework for evaluating opportunities.

A Balanced Approach to Market Insights

We don’t claim to predict the future with certainty — no one can. What we do is leverage mathematics and disciplined analysis to provide structured, unbiased insights that help you make more informed decisions in an uncertain market.