Dividend Growth Whisperer: A Short And Sweet Guide To Understanding And Profiting From Your Best Long-Term Investment (Short and Sweet Guides Book 1) by Forbes Shane

Author:Forbes, Shane [Forbes, Shane]
Language: eng
Format: epub
Publisher: NeoCadence LLC
Published: 2018-10-21T16:00:00+00:00

Current P/E ratio

Expected return

10

14.8

11

14.1

12

13.5

13

12.9

14

12.4

15

11.9

16

11.5

17

11.1

18

10.8

19

10.5

20

10.3

21

10.0

22

9.8

23

9.6

24

9.5

25

9.3

26

9.1

27

8.9

27.5

8.8

Table 5.1: Using the magic formula. Use this table to read the expected return from the magic formula given a current P/E ratio. The expected return is in percent. The range of P/E ratios represent, roughly, the range of applicability of the magic formula.

But, wait, there’s more! Even simpler, just remember the numbers below. They represent important demarcations:

• p/e ratio of 15, expected return of, roughly, 12 percent;

• p/e ratio of 21, expected return of 10 percent; and

• p/e ratio of 26, expected return of, roughly, 9 percent.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.