troymo

> I use P/B = 1 + (ROE-r)/(r-g) as this is sure to be asked. Excess price over book equals excess earnings scaled to PV.

This is cool because you can also do the RI valuation, by multiplying by B0:

P/B = 1 + (ROE-r)/(r-g)
V = B + (ROE-r)/(r-g) x B