Hi Victor, In the video that you touch on the price/earning ratio.
You shown us how to use p/e to find out the intrinsic value of vicom and the the margin of safety is 17,1%.
However if according to your formula:-
margin of safety =intrinsic value – share price/ intrinsic value
ie $6.85 – 5.85 = $1.00
$1.00/$6.85 x 100% = 14.60%
it worked out the margin of safety is only 14.60%. Please clarify. Thanks
Thank you for pointing out the mistake. I realised I divided by the wrong denominator. Your answer is correct.
May I Know what to find the Historical p/e ratio chart as shown in the example? Thank you.
You download the share price for the company from yahoo finance then you use excel and plot out the PE chart by inputting the earnings per share figure in excel to compute the PE.
Hi Victor, so if I were to plot a p/e chart for 5 years. I will use the eps respectively for yr 1, yr 2, yr 3, yr 4 and yr 5. Correct?
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