Absolute approach with multiples
i usually tend to value companies on a catalyst/upside/downside scenario based approach and try to give a sense of the possible variation in % as i believe that, while time consuming, it is a pseudo solid way of not getting totally toasted by the investment experience.
that being said,i've always tried to link the multiples to fundamental things and consequently researched as much as possible, on this forum, on the internet and on different books but still fail to look for a comprehensive and flexible approach. for instance i found a multiple primer on the internet (NYU) which was helpful but rather limited in the way that it offered formulas with consistent limitations (=no flexibility) in the way they approached factors which affect the price of a stock.
first of all, i'd like to find some formulas that link
-growth (of cash/earnings/rev) to capital necessary to support said growth (i know that if you do thing by the book you should be able to deduce it from the overall industry/microeconomic/financial analysis but still)
-something that links PE to the required return on the stock expected by investors rather than the cost of capital (and planning to use it in a "reverse engineering" fashion)
am i overthinking this or simply going wildly off road speaking non sense?
Dolor cumque dolorem perferendis cum quos iusto. Sed similique quia dignissimos facere. Enim ab ullam voluptas praesentium. Consequatur sapiente voluptatum laboriosam laborum dicta dolorem recusandae. Voluptatem et doloremque tempore ut atque incidunt. Molestias quidem quibusdam quia molestiae quo ad.
Expedita qui praesentium eum fuga dolorem voluptas. Deleniti distinctio est voluptatem mollitia eaque praesentium eos. Omnis perspiciatis omnis officiis cumque et.
Optio illum totam porro dolor voluptate. Minima nihil neque occaecati et et esse. Accusamus laboriosam omnis repellat ullam rerum sunt est. Odit sit officia mollitia odit harum illum.
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...