Franchise P/E

cfaboston28 · May 31, 2009, 1:54am

r in the formula is real or nominal required return?

bpdulog · May 31, 2009, 1:55am

Nominal, unless otherwise stated.

chowder · May 31, 2009, 2:55am

make sure you use Real r if dealing with inflation pass through calculations for P/E 1/r’real+(1-inf pass through)*inflation rate