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

To: bruwin who wrote (55484)	6/16/2015 5:58:15 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78687

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..