Joined: 01/Jan/2006
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Posted: 27/Oct/2011 at 12:56pm
Originally posted by zulfi
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......
For non cyclical companies with moats and entry barriers the past is a decent guide to the future for cyclicals there are no guides only surprises.
'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
Joined: 01/Jan/2006
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Posted: 03/Nov/2011 at 11:03pm
It is a PE that is applicable to stock in case there are no bull or bear market frenzies. Arrrival is mostly historic an offshoot of sustainable and revenue growth. There are no clear cut formulas here.
'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
Joined: 21/Dec/2007
Location: India
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Posted: 03/Nov/2011 at 11:09pm
Will it be better to consider average projected future growth rate as normal PE (so that PEG =1) to arrive at normal projected price , instead of normalized PE that is historic based ?
If a business does well, the stock eventually follows:Warren Buffett
Joined: 01/Jan/2006
Location: India
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Posted: 03/Nov/2011 at 11:24pm
like i said there are no rules here but if growth trends are similar thee should not be much diff.
'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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