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Strategies & Market Trends : Value Investing

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To: bruwin who wrote (55484)6/16/2015 5:58:15 PM
From: Graham Osborn  Read Replies (1) of 78702
 
In order to incorporate both effects probably better to use the Gordon growth formula with the "effective" corporate bond rate and the growth rate you expect:

investopedia.com

PG's growth has kinda stagnated the past 5-7 years due to empire building so I'm not sure I would assign much to the growth rate. That simplifies to the equity bond formula you showed earlier. But I totally agree - for the rare company that can compound its earnings sequentially for 10 years even, there's pure magic in the math. How to find those companies, and when to buy them..
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