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.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Knighty Tin who wrote (34718)10/28/1998 10:23:00 PM
From: gambler  Read Replies (1) of 132070
 
Is 5% eps growth worth 23 times eps? Not unless the risk free rate is 2.2%. And it is not.

Mike,

I know I studied this in a finance class before, but I can't remember the formula. Please explain how you came up with the 2.2% rate figure. I ignorantly subscribe to the PE should equal EPS growth rate theory. It would be interesting to know how to adjust this theory to varying interest rates like you state above.

Just for fun, what PE do you believe PFE should get?

Thanks,

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

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News