Yardeni. should, market

Wendy01

If we divide 1/Yardeni model, that should be the intrinsic P/E of the market.

Correct?

cityboy

Sorry so you mean that you need to multiply the Eo by 1+LTEG to get E1 to compare it with the Yardeni Model? Am I correct to say that?

NakedPuts2011

june2009 Wrote:
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> idreesz Wrote:
> --------------------------------------------------
> -----
> > Yup P/E = Po/E1
>
>
> Thats right, but there have been questions where
> they will give you current market price and most
> recent actual earnings on the market (P0/E0). So
> to compare yardeni to the market you need to get a
> forward market number - use 1+ltg for the MARKET
> to get P0/E1

Thanks. Will keep that in mind.

Darien

FinNinja Wrote:
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> 1/yardeni is the forward P/E, though you don't
> need to discount to compare.
>
> if that were the case you would also need a
> discount to compare fwd earnings yield to current
> which we don't.
>
> I usually change the yardeni to a P/E and compare
> to the current P/E b/c it's much easier for mee to
> see that a market is under priced if the P/E will
> be higher in the future rather than thinking about
> the earnings yield. the earnings yield is just
> backwards to me and I think it opens myself up to
> errors on the test.

This is exactly what I was confused about.

Thanks everyone. I thought it was P0/E1, but was not 100%.

PalacioHill

Yup P/E = Po/E1

infinitybenzo

I'm trying to think it through. Yardeni uses a forward expectations- But I can't imagine we'd have to discount it back to get intrinsic, I just can't recall ever seeing this anywhere.

justin88

Yardeni is forward

should be comped to fwd marker P/E so if they give you historical or current market P/E, adjust it to a forward P/E so you are comping apples to apples.

aidebaobao

So if we had the Forward P/E, Yardeni would be intrinsic Forward P/E or intrinsic P/E?

cityboy

Yardeni is beyond worthless.

mar350

jdane416 Wrote:
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> Why are you discounting current P/E? And by
> current, you mean current Forward, correct?

Ya. I don't have my notes in front of me. But I remember seeing a problem where you had to discount the forward to compare to the intrinsic.