Tag Archives: estimation

How to estimate future PE ratios

Much the same as future EPS growth, estimation of future PE ratios is an important skill to have in place as a value investor. A company’s price to earnings ratio (PE) is a relative measure of how expensive or cheap a company is – check out this primer explaining what factors affect PE and why it’s important. In this article we’ll look at a few different techniques to estimate future PE ratios. Continue reading

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