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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (33609)2/22/2009 12:31:45 PM
From: Spekulatius  Read Replies (2) of 78958
 
Paul, I would be interested in discussion you formula here. The only formula I used was a NPV formula using a LT growth rate 10 years out plus the NPV of dividends and discounting back with a discount rate. Right now I would say such an approach is pretty useless, since in many cases we do not know what the earnings next quarter, next year much less so in ten years are going to look like.

Right now i like anializers approach more to look at stocks trading below book and that are still profitable.

As far as ROIC and margin formulas are concerned I say use either one or the other.Using both amounts to double counting, IMO.
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