2 Formulae, whose concepts I am unable to find in the Schweser Notes of Equity
- Intrinsic P/E = Tangible P/E + Franchise P/E
where Franchise P/E = Franchise Factor * Growth …
- Effect of Inflation on Leading P/E = 1/ real reqd rate of return +[( 1- Inflation flow through rate) * Inflation rate]
I do not know where these came from, they are there at the end of the book formulae but have not seen them in the actual readings in Schweser.
Can someone please help ?