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

To: anializer who wrote (26635)	4/22/2007 4:04:40 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78998

I'm not getting the very low p/e number for PKX that the article states. Additionally, I'm looking closer in "The Intelligent Investor" where I see the 22.5 as bogey. That number 22.5 looks to be calculated there by using p/e where the "e" comes from averaging earnings over the past three years. And we see this (the three-year averaged earnings) mentioned also and again by Validea. At one point, Dr. Graham says in effect, don't pay more than 15 times earnings and 1.5x b.v. (i.e. the 22.5 bogey) if you're a defensive investor. I am inferring that he meant 15x those averaged earnings over the past three years. Could it be stretched -maybe (?) - and interpreted as 15x current earnings (for the "enterprising investor"?)? I don't know. I doubt though that Dr. Graham would be using estimated or future earnings for p/e. Still, this is not to say that PKX is not a value stock. It still could be quite a value. And it still could fit the formula. (I didn't quickly find the past three years' earnings history to check that.)