Do a decent DCF or profit analysis
Quote:
Originally Posted by
hardt
Implied 0% growth rate from 2017 onwards = (35(8.5+0)*4.4/3.5)/100 = $3.74
Implied 1% growth rate from 2017 onwards = (35(8.5+2)*4.4/3.5)/100 = $4.62
Aren't their earnings supposed to decline over the next 3-5 years?
Quote:
Originally Posted by
mikeybycrikey
Any chance that someone could annotate this for me? Currently it doesn't mean much to me.
35 -- EPS best guess for FY2017
(8.5+X) -- the much abused Graham formula
4.4/3.5 -- airline discount factor, accidentally inverted :(
Should read
0% growth = $0.35*(8.5+0)*3.5/4.4 = $2.37
1% growth = $0.35*(8.5+2)*3.5/4.4 = $2.92
Best Wishes
Paper Tiger
Many a true word spoken in jest
Quote:
Originally Posted by
hardt
Honestly never knew he inverted yields with airliners, is that for real.
No I made that up - I think.
But kindly do tell us what is this 4.4/3.5 thing?
Best Wishes
Paper Tiger