Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: Bilow who wrote (9084)	11/4/1997 12:35:00 AM
From: Berney	Read Replies (2) of 94695

Carl, Wow that's a lot of data. Let me try to simplify my view. I'm a Graham fan. In his The Intelligent Investor, he had an interesting formula to gauge approximate FMV (Tried to look up the page but couldn't find it on short notice). Somewhat modified for current events, is: (Current Year EPS (8.5 + (2 Proj Growth Rate of EPS)) * (4.4/7.7)) So then let's plug in the pieces (I love algebra). The October S&P Stock Guide estimated 1997 EPS for the S&P to be $44.49. Let's see what happens to the FMV at different projected growth rates: GROWTH FMV S&P RATE INDEX 10 797 11 853 12 909 13 965 Seems this quarter is coming in at about 12% growth. Comments? Berney

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