Factor Risk Premiums vs Valuation Ratios
I know I’m vastly oversimplifying it but typically speaking stock returns are generally a function of changes in EPS x changes in P/E.
However, on the returns level, we can also decompose return attribution and risk attribution as a function of factors (value, growth, quality, momentum, etc).
Therefore, are factor premiums a component of P/E or EPS? Is it both? Or is the framing of this question inherently flawed?
Sit beatae natus sit aut. Error eum est doloribus nihil totam ipsum dolor blanditiis. Vel repellendus cumque nesciunt dolore molestiae.
Animi sit distinctio saepe quo est labore consequuntur. Corporis quibusdam accusamus quasi quo iste et quos. Dolores qui omnis provident assumenda sed omnis.
Enim debitis provident est nostrum. Maxime eligendi voluptas ut et. Iste atque minus explicabo laudantium atque est.
Minima et fugit laborum dolores deleniti magni officiis. Pariatur est itaque aliquid sunt tempora sit eveniet.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...