If you are asked to find Intrinsic P/E, would you automatically assume it to be Po/E1 i.e. the Leading P/E value?
CFAI mocks tend to do so.
Can someone explain why this is the case?
I mean....why can't Po/Eo (trailing) be the intrinsic value?
Many thanks!作者: troymo 时间: 2011-7-11 19:39
I think it depends on the data given and the accuracy of them.
If you are given both trailing and leading EPS then I assume that since valuation is a forward-looking process you should take the leading alternative, given that you are confident.
This is the most reasonable explanation I can think of.作者: SpyAli 时间: 2011-7-11 19:39
s**t I always thought intrincis P/E was the P/E based on the gordon growth model, can someone please confirm if I am incorrect作者: BelalM 时间: 2011-7-11 19:39
In explaining this issue in text, CFAI uses E1, but in EOC question it uses E0?
