SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : How to best deal with KOOKS at this web site

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Iceberg who wrote (690)7/5/1997 5:52:00 PM
From: Bill Ulrich   of 1894
 
Hi Ice, re: aggregate earnings and 'chix'

You are aware that part of IOMs value is based on current and
expected earnings. These two parameters help determine a 'fair'
price for IOM.

Now take the 30 companies on the DJIA, get their earnings numbers,
and see if the aggregate price for the DJIA is justified by these
combined earnings. It's a long tedious process, but somebody has
already done it somewhere - economists are always noodling about
with this type of thing. I just don't know where to find it right
now.

Also, I recall that Herb uses the MF PEG calculator. It would be
interesting to see what this returns about the market overall. As
it was designed to be used with individual stocks, I don't know
if it's result would be meaningful. But conceptualizing the DJIA or
the NASD composite as an individual stock should work. I
should note, however, that a fair amount of number crunching is
involved and I would not want to impose upon anybody to undertake
it, unless they really wanted to prove their point. And, again, the
answer may already exist and just needs to be found.

It would answer the question:
"I wonder how much of the current market value can be attributed to
us simply throwing money at it vs. sound fundamentals?"

-MrB
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext