Fundamental Analysis: P/E ratio to Growth Rate Comparison - :: Forex, Crypto Currencies, Bitcoin, Crude, Economy, Gold & Silver, Investment, Podcast, US Markets - By Anirudh Sethi

Fundamental Analysis: P/E ratio to Growth Rate Comparison

29-Jan-19 10:59 pm

Projected earnings growth rate should ideally be at twice the trailing P/E.
To get the potential price increase, assume the P/E remains the same over the next year and multiply that with next year’s expected earnings to get the potential price one year later.