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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (8445)	9/30/1999 1:49:00 AM
From: Area51	Read Replies (1) \| Respond to of 78595

To all you value investors: Does anyone have an equation (or a web page) that will calculate fair value for a company given EPS=X, and annual growth rate=Y%. The old rule of thumb says X*Y but under weights the growth rate IMO. [e.g. - a stock with EPS of $40 and a 1% growth rate would be given the same value as a stock with EPS of $1 and a 40% growth rate; but (assuming the growth rate is constant, and the valuation equation is valid) the first stock will appreciate 1% per year, whereas the second stock will appreciate 40% per year)]. Thanks, Area51