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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
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Posts: 9319
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 Topic: Components of P/E Ratio Posted: 14/Jul/2011 at 10:41am |
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
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 Posted: 14/Jul/2011 at 10:45am |
Page 62-64 of this book are very interesting.
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
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 Posted: 14/Jul/2011 at 11:07am |
Yes, that book is interesting.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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smartcat
Senior Member
Joined: 29/Mar/2007
Location: India
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Posts: 4243
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 Posted: 15/Jul/2011 at 3:51pm |
Waah waah Kulmanji! You have learnt how to read books finally!
How does the author come to the conclusion that these 5 parameters make up the "components" of P/E ratio?
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
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 Posted: 15/Jul/2011 at 10:34am |
Originally posted by smartcat
Waah waah Kulmanji! You have learnt how to read books finally!
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Yes, finally.
How does the author come to the conclusion that these 5 parameters make up the "components" of P/E ratio? |
Please invest Rs. 300+ to buy the book. It's good.
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vijayM
Senior Member
Joined: 21/Dec/2007
Location: India
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Posts: 649
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 Posted: 26/Oct/2011 at 10:40am |
Kulman ji,
Can you illustrate with one example, how to arrive at fair P/E ratio (perhaps a range indicating lowest to highest, if not exact number).
I use fair P/E = Avg growth for next 2 years (projected) i.e. PEG =1.
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If a business does well, the stock eventually follows:Warren Buffett
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zulfi
Senior Member
Joined: 28/Jan/2011
Location: India
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Posts: 206
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 Posted: 26/Oct/2011 at 10:59am |
sir , dont u think that large part mistakes are made in projections n whenever v project future earnings v just extrapolate past earnings , but done and dusted , what is going to happen in future is impossible to predict .so y to waste time in predicting future ....comments awaited.........thanks......
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zulfi
Senior Member
Joined: 28/Jan/2011
Location: India
Online Status: Offline
Posts: 206
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 Posted: 26/Oct/2011 at 11:04am |
we all in this business knows price of everything , but don't know the earnings ,how can anyone know , even management dont know what is going to happen in future about their business...but we all predict it ,thats the beauty...............
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