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

To: E_K_S who wrote (74613)	12/24/2023 3:51:07 AM
From: bruwin	2 Recommendations Recommended By E_K_S Sisyphus Read Replies (1) \| Respond to of 78476

If we take Buffett's 'Equity Bond' strategy of determining whether or not the share is trading at a favourable price as in ---> Message 26421355 .... we have the following formula = Pretax Income/No. of Shares/10 Year AAA Corporate Bond Rate In UGI's case, using the company's last positive Pretax income, as one finds in their 2022 Annual Report, of $1387mil., its No. of shares as 236.8mil., and the current 10 Year AAA rate of 4.66%, we get :- 1387/236.8/0.0466 = ~$126/share which is certainly greater than UGI's current price of ~$25, so it does appear to be in a good "Buy" zone. Needless to say, using UGI's latest TTM Pretax Income of -$1837mil. would make little sense. I suspect that will likely change in the not too distant future if all goes according to your expectations .....