justified trailing P/E : is it P0/E0, where P0 is current stock price, E0 is last year end earnings?
if it is justified leading P/E , what is the timming of P and E we should use? Thank.s作者: bingbingliang 时间: 2011-7-13 14:15
I think leading P/E is P0/E1 which is next years expected earnings. And trailing P/E is P0/E0 which is the beginning of the years earnings.作者: ayodayo 时间: 2011-7-13 14:15
when we could add " justified" to it?
Reggie Wrote:
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> I think leading P/E is P0/E1 which is next years
> expected earnings. And trailing P/E is P0/E0 which
> is the beginning of the years earnings.作者: wxs1986 时间: 2011-7-13 14:15
Not too sure man, I thought it's always said "justified" and I've never seen a question about whether its "justified" or "unjustified". Do you have a specified question from somewhere?作者: Sportsman 时间: 2011-7-13 14:15
current price over current EPS
also use [ d0(1+g)/E0 ] / r - g作者: 5566 时间: 2011-7-13 14:15
which is the same as: (1-b)(1+g) / (r-g)作者: mp3bu 时间: 2011-7-13 14:15
Justified Trailing P/E = [payout ratio x (1+g)]/r - g
The reason why it's called justfied is that it's derived from the intrinsic value analysts calculated. you can also think of it as "implied" si tu veux.
