When using dcf valuation what are the alternatives to using the capm as the discount rate?
can any pro investors please share their method of value a business beside me.
Answers:
i use ROE as a P/E. if the ROE is 15% next i look to see if the stock's P/E is 15 or below. i buy when the P/E is 50% below ROE.
so if i own a ROE of 15% i want a P/E of 7.5 . this give me a edge of safekeeping so to speak.
i hope this help.
p.s.= brand sure the company is fundamently nouns too.
The Arbitrage Pricing Theory is one alternative to the CAPM.
Do you deliberate this technology will grow or do you see fiasco near this view?
Im currenty invested in ITRO.OB, a penny stock, and contemplate it's going to go thru the roof subsequent year, anybody
Stocks crashing?
Dividend give somebody the third degree?
Question on the subject of stock resort "bull" spread?
Answers:
i use ROE as a P/E. if the ROE is 15% next i look to see if the stock's P/E is 15 or below. i buy when the P/E is 50% below ROE.
so if i own a ROE of 15% i want a P/E of 7.5 . this give me a edge of safekeeping so to speak.
i hope this help.
p.s.= brand sure the company is fundamently nouns too.
The Arbitrage Pricing Theory is one alternative to the CAPM.