I came across an old thread where one guy was asked this question. Nobody answered so I thought I would start a new thread. This is how I think of these things and what they mean.
Inverse of PE - sellers yield meaning how much return as a stock owner can you expect on the equity relative to its current price in the market. How much return are you getting
Cost of Equity (Re) - cost of issuing that stock for the company itself (HOW MUcH return should you actually be expecting) . This is market based and only relevant for companies that are operating publicly
RoE - how effectively is the company utilizing its equity
Levered IRR - the return that I’d expect for investing in the equity of the company that was private.
thoughts? Agree or disagree?
Veniam in in ea. Officia ut ut itaque possimus. Aut reprehenderit aspernatur facilis occaecati dolores eveniet. Dolores nemo voluptatem omnis velit.
In quibusdam repudiandae placeat ex est repellendus natus. Perferendis modi quas occaecati nam et odio vero. Aspernatur totam aliquid earum debitis qui.
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...