Forum Archive Index - May 2004

["Fiona Phibbs" <fibz@xtra.co.nz>]

Hi Snoopy

It is just the dividend discount model transformed into the earnings
multiplier model or PE. You can source it from any advanced finance text I
used Reilly and Brown - Investment Analysis

cheers Dean

----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Friday, 28 May 2004 18:07
Subject: Re: [sharechat] More on the marrket risk premium


> Hi Dean,
>
> >
> >As you know the
> >P/E multiplier can be restated as - P/E = D1/E1 / (k-g)  so
> >is therefore greatly influenced by prevailing interest rates
> >(inflation), ROEs, and dividend payout ratios.
> >
>
> Sorry you overestimate me.     I don't know this.   I'm guessing that D1
> are the dividends received in year 1 and E1 represents the total
> company earnings in year 1.   What are 'k' and 'g' and what is the
> source for this formula?
>
> TIA
>
> Snoopy
>
>
>
>
> --
> Message sent by Snoopy
> on Pegasus Mail version 4.02
> ----------------------------------
> "Q: If you call a dog tail a leg, how many legs does a dog have?"
> "A: Four.  Calling a tail a leg doesn't make it a leg."
>
>
>
> --------------------------------------------------------------------------
--
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/chat/forum/
>


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/