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


To: E_K_S who wrote (55478)6/16/2015 12:34:12 PM
From: Graham Osborn1 Recommendation

Recommended By
Jurgis Bekepuris

  Respond to of 78683
 
I don't think there any simple bottom up method. The simpler approach is to ask the market using that graph of PE vs long-term rates. That gives an "effective" rate of 6-10%. Which would put PG at $47-79/ sh. I'm not saying I personally agree with using the equity bond method as anything more than one ratio of many, but if you're going to use it that seems more realistic.