The formula for Leading P/E is (1-b) / r - g wih (1-b) being the dividend payout ratio.
The formula for DDM is D1 / r-g
In theory these could give the same answer correct?
If (1-b) = 0.4 and D1 = 0.40 in the DDM, then the P/E ratio would be the same as the stock price, correct? Or am i missing something?