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Biotech / Medical : Prime Medical Systems, Inc.(PMSI)
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To: john adriaan kolenberg who wrote (66)3/28/1997 6:12:00 PM
From: michael modeme   of 210
 
The model actually takes that into account indirectly. I used the correlation between P/E and earnings growth (measured in different ways) and in the ratio P/E, the E is earnings per share. So the correlation would change accordingly if the price per share decreased. That is to say that the P/E ratio would increase, and the correlation between P/E and earnings growth would change. Cheers
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