Have you guys heard of the PB-ROE model?
Heard of it recently, wondering what’s your thoughts about it.
Kinda seems like earnings yield somewhat.
I have not hear before this model. Can you point me to the link so I can go read what it is about?
Have a look :)
The ratio is just to gauge the quality of the company. I think it is most suitable to use for deep value company. If you want to use value growth you can use the same thing except it is PE-ROE ratio
Yea, I was thinking of playing around with the multiples but I was also thinking whether the output really means anything or not ^^”
Looks like earnings yield or low PE could more or less do it as well.
I think the ratio is to measure in term of quality instead of cheapness. Sometime cheap does not mean good but quality at reasonable price may be a good bet
Ah. Thanks for the insight!