Super contribution 😀. What does 8.5 and 2 mean in the first parenthesis in the formula " EPS * (8.5 + 2 * growth factor) = 105 * (8.5+2*3.49) = 1,625.40 IR" ?
•
11
•
@_Julian_ The 8.5 are the basic P/E assumed by Graham. The 2 are the growth factor for the multiplier on the future profit. There are some variations of this, but these are the original formulas of Graham. No investment advice.
•
11
•