^V^
PE = Share price/ EPS
From year 1990 to 2000 , avg FD rate was around 8 %
From Year 2001 to 2007 , avg FD rate is around 6 %
Hello bro benjamin, i know u r loaded lah. those ppl placed their FD more than 1 mil will enjoy special rate like our bro benjamin..ha ha
take d average , i will say is around 6.5% ^V^ agreed guys ?
hence : - PE 15 is as same as 6.6% FD rate, how i got that ?
simple :- 1/15 x100% = 6.6%
if PE @ 20 means 1/20 x 100% = 5%
If PE @ 25 means 1/25 x 100% = 4%
If PE @ 30 means 1/30 x 100% = 3.3%
If u invested one dollar in stock x, n this stock x giving u EPS of 10cts ( 1/0.10 = PE 10 ), this means it needs 10 years for u to gain back yr capital of one dollar ^V^
In short PE 10 means u need 10 years to recover yr capital
PE 20 means u need 20 years to recover yr capital
Now calculate yrself, if stock x traded at PE 3 , answer me, what is d FD rate for PE 3 ? n u need how many years to recover yr capital ?
If u can answer that.. this show u r HALF understand d magic key of PE !
answer that ^V^
7 comments:
3 years ??
Dear Sam,
3 years with 33.33%, where you get the FD rate information, i search Bank negara and trust fund site seem get nothing, or i missed out any?
4 months to recover capital.
herbert...how u get 4 months !??? 4 months = PE0.25 !! i hv never came across PE0.25 in my life b4 even in year 1998 (mkt crash )!
Vince38 is correct ! average FD rate should be around 6+ over d past 20 years, in year 1995 to 1998, some banks r offering 10% FD rate.
ben n tailow... u guys r rich now.. bjcorp shot up woww $$$$$$ ma ma me yaaaaaa... no way for me to buy back anymore. cheers for u guys
^_^ I think Tailow is richer, because I have cash out 10lots but his holding still intact.
Thanks for your PE info. Really make sense, but I will like to add, credibility of management play a heavy role here (look at megan, low PE was simply fraud job by mgt team).
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