Forum Archive Index - May 2004

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Dean,
 
>
>As you know the
>P/E multiplier can be restated as - P/E = D1/E1 / (k-g)  so 
>is therefore greatly influenced by prevailing interest rates 
>(inflation), ROEs, and dividend payout ratios.
>

Sorry you overestimate me.     I don't know this.   I'm guessing that D1 
are the dividends received in year 1 and E1 represents the total 
company earnings in year 1.   What are 'k' and 'g' and what is the 
source for this formula?

TIA

Snoopy




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