Terry Smith: What is a reasonable PE ratio? (for a 7% annual return in companies he has owned)
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- Опубликовано: 10 сен 2024
- Note. For a return higher than 7%, the PE ratio at purchase, must be much lower.
In 1973 these companies where mid cap (mature companies cannot continue to grow at the same rate)
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Basically it means value investing is for short term horizon.
Do you know where I can find the full video?
ruclips.net/video/0HRgxqpYD0E/видео.html
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For 7% Return in company (ROIC=Net Income ÷ Invested Capital), the fair P/E is 7.