Hi Expert:
Does anyone can describe formula with easy example of Benjamin Graham that how to use this formula given below.
V* = EPS X (8.5+2g) x 4.4
---------- ------------------------
Y
In the above given formula the 2g is "The company’s long-term (five years) earnings growth estimate".
Now the question is that How to obtain five years earnings growth value of future to put the place of (2g)?
For Example if a Company MCB is trading in $300 and the EPS of 12 months is $2.50.
Kindly advise what is formula of obtaining five year earning growth value ?
Thanks
Ehtsm
Does anyone can describe formula with easy example of Benjamin Graham that how to use this formula given below.
V* = EPS X (8.5+2g) x 4.4
---------- ------------------------
Y
In the above given formula the 2g is "The company’s long-term (five years) earnings growth estimate".
Now the question is that How to obtain five years earnings growth value of future to put the place of (2g)?
For Example if a Company MCB is trading in $300 and the EPS of 12 months is $2.50.
Kindly advise what is formula of obtaining five year earning growth value ?
Thanks
Ehtsm