where
FF = (ROE - r)/(ROE * r)
G = g/(r-g)作者: SpyAli 时间: 2011-7-13 15:02
both are the same.... (or should work out the same)
two ways to bell the same cat.
CP作者: SFoyil 时间: 2011-7-13 15:02
they are not the same. 2nd formula uses only fundamentals. 1st uses market price. what if the shares were way over valued and Observed P/E is 10000000000作者: tikfed 时间: 2011-7-13 15:02
Sorry - I meant to say
Justified P/E - Base P/E.
Justified = (1-b)/(r-g)
Base = (1/r)
Remaining = FF*G = (1/r - 1/ROE) * (g/(r-g))
CP作者: FinancialAnaly 时间: 2011-7-13 15:02
so, in the stalla book it first says
Franchise PE = Observed - Base
then gives the other formula.
is the first one just wrong or am i missing something?作者: b_sea93 时间: 2011-7-13 15:02
I always use FF*G
FF = (1/r)-(1/roe)
G = g/(r-g)作者: 5566 时间: 2011-7-13 15:02
Oh my god....there are two components....FF*G is the growth component !作者: brainsX 时间: 2011-7-13 15:02
no, G is the Growth component and FF is the franchise component
