Looking for something else?

Not the answer you are looking for? Search for more explanations.

## More answers

Looking for something else?

Not the answer you are looking for? Search for more explanations.

- anonymous

hi guys, can i please have some help with working out P/E ratios? xx

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Get our expert's

answer on brainly

SEE EXPERT ANSWER

Get your **free** account and access **expert** answers to this

and **thousands** of other questions.

Get your **free** account and access **expert** answers to this and **thousands** of other questions

- anonymous

hi guys, can i please have some help with working out P/E ratios? xx

- katieb

I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!

Get this expert

answer on brainly

SEE EXPERT ANSWER

Get your **free** account and access **expert** answers to this

and **thousands** of other questions

- anonymous

P (Price per Share) / E (Earnings per Share)

- anonymous

thanks :). is it possible to work out an intrinsic value from the p/e ratio? x

- anonymous

intrinsic value is calculated by discounting firm future cashflows at weighted average cost of capital.

Looking for something else?

Not the answer you are looking for? Search for more explanations.

- anonymous

yeah, i kinda understand...i've done some of that all ready with discounted cash flow valuation. But now i'm trying to find an intrinsic value from relative valuation ratios? sorry its all a bit confusing :S

- anonymous

intrinsic value is not same as relative value

- anonymous

for a high growth company do you forecast the change in working capital and net capex at the same rate as operating income grows? :)

- anonymous

growth*

- anonymous

change in working capital better tied to revenues rather than income as income more volatile. necessary capex to be assigned according to what investments are required to achieve revenues you forecast when company reaches stable growth. calculations in attached doc written by damodaran.

- anonymous

hmmm it just seems so hard to keep growth constant with ROC and reinvestment rate
like which one do I determin first?? should reinevesment rate be capex and working capital as a % of operating income?? because that value coupled with my very high growth rate give me an ROC close to 100%!!!
sorry if that was a bit much, im really struggling :) :)

Looking for something else?

Not the answer you are looking for? Search for more explanations.