Module 31.4 LOS 31.h: Relating Justified PE to Justified PS and Justified PB
From the justified PE equation we can derive several relationships to PS and PB ratios: where: V0 = fundamental value D0 = …
From the justified PE equation we can derive several relationships to PS and PB ratios: where: V0 = fundamental value D0 = …
Justified P/Es are based on firm fundamentals. The leading P/E uses earnings forecasts from the next period while the trailing …