P/S Ratio

cre_analyst · May 13, 2009, 11:39pm

P/S = [(Profit Margin) * (Payout Ratio) * (1 + g)] / (r - g) Is profit margin gross or net?

cpk123 · May 13, 2009, 11:41pm

Net Derive it… P/E1 = (1-b)/(r-g) P/S = E1/S*(1-b)/(r-g) E1/S = NPM

cre_analyst · May 13, 2009, 11:50pm

Thanks!

system · May 14, 2009, 12:10am

CP - can you show how to derive Div Yield and P/B in the same way?

cpk123 · May 14, 2009, 12:26am

Dividend yield is just Dividend / Price. P/E = (1-b)/(r-g) E*(1-b) = D P = D/(r-g) D/P = (r-g) P/B = E1/B(1-b)/(r-g) = ROE (1-b)/(r-g) = (ROE-g)/(r-g)