Justified Leading P/E vs. Leading P/E or Justified Trailing P/E vs. Trailing P/E --> Term ‘Justified’ What’s this term about?
The P/E you would get if you applied the formula versus reported P/E.
justified is what it Should be… means calculated through intrinsic price … the other one calculated from market price… thats what it is i think …
it’s the same thing as the difference b/w “Justified CFAI text” and “Schweser”
Justified means based on the instrinsic value. Instrinsic value in term is the analyst estimate according to the fundamentals of the business and company in question. It is not the market estimate.