When they ask how much of p/e is attributable to PVGO, why do we put PVGO/earnings? Is PVGO a price?
PVGO is the peice of a growth stock that is not explained by its earnings (or lack there of)
Vo = E1 / r + PVGO
Therefore we can deduce the amount of P/E that is accredited to its “growth”,
(E1/r) / earnings + PVGO / Earnings = P/E
i just asked a quesiton on PVGO too…any thoughts ?