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- 2013-11-2
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Equities: Justified PE, P/B, P/S, dvd yield
Can anyone explain what is going on with the "justifying" of the multiples?
PE: [(1 - b) x (1 + g)]/(r - g)
P/B: (ROE - g)/(r - g)
P/S: [(E/S) x (1 - b) x (1 + g)]/(r - g)
Dividend Yield: (r - g)/(1 + g)
I don't understand the logic of these formulas |
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