I noticed that in the latest update of the modules, the part about PEG ratio under Valuation has been removed. Is there a reason for it?
When it comes to valuing a company, we have always been using PE, P/CFO and PB. Those methods have given us better result and much more accuracy as compared to other valuation method. Hence, decided to show valuation methods that we used instead of just theory.
This are the valuation method you should use for the following companies:
Alibaba – PE ratio – I will say stick to PE for Alibaba, there is no need to do P/CFO
For P/CFO valuation use the operating cash flow per share instead of FCF per share. Most of the time, you should be using the 10 years P/CFO average unless the company is growing fast in the recent years then use the 5 years average.
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