标题: is it correct to say this re: ROE and P/E? [打印本页] 作者: segalm 时间: 2011-7-11 19:53 标题: is it correct to say this re: ROE and P/E?
ROE has no direct effect on P/E, if return is paid out in dividend, p/e decreases, if return is reinvested within the company, p/e increases.
is this statement correct?作者: flyinggirl 时间: 2011-7-11 19:53
ROE affects PE through the payout ratio作者: 5566 时间: 2011-7-11 19:53
(1-b)/(r-g)=leading P/E
b=g/ROE
(1-(g/ROE))/(r-g)= P/E
as ROE falls so does P/E作者: bolligerallstar 时间: 2011-7-11 19:53
ROE definitely affects P/E, by altering g.
g = (1-b)*ROE
As ROE falls, so does g. as g falls, so does P/E.作者: thecfawannabe 时间: 2011-7-11 19:53
grumble Wrote:
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> ROE definitely affects P/E, by altering g.
>
> g = (1-b)*ROE
>
> As ROE falls, so does g. as g falls, so does P/E.
CORRECTION: g=(b)(ROE)
Other comment holds true.作者: stalkey 时间: 2011-7-11 19:53
some people define b as the dividend payout ratio instead of the earnings retention ratio. grumble is smart dude I'm sure he knows it is what you keep after dividends are paid out of NI.
