I Studied 46 Columbia Business School…

[ATC (Absolute Total Compound)]

Deserved P/E (Formulated just ROIC & CICC)

= √( 100 × ROIC/CICC )

= Geometric Mean of PEROIC & EPV’s P/E

.

Deserved P/E (Formulated just for Positive Gnet_income, ROIC & CICC)

= ∛( 100 × Gnet_income × ROIC/CICC )

=Geometric Mean of PEG, PEROIC & EPV’s P/E

.

Deserved P/E (Formulated just for Negative Gnet_income, ROIC & CICC)

= 100 × { ∛[ (1+Gnet_income Ratio) × (1+ROIC Ratio) × (1+(1 ÷ CICC_Ratio)÷100) ] - 1 }

= Geometric Mean of PEG, PEROIC & EPV’s P/E

.

Reference:

https://absolutetoal.substack.com/p/earnings-return-power-value-erpv?r=5g11d4&utm_campaign=post&utm_medium=web&triedRedirect=true

[Bob Flynn]

I was hoping the title’s punchline would be “Here’s How to Pick a Great Stock”

[ATC (Absolute Total Compound)]

Use “valuation multiples” that are “applicable to ALL business models”:

P/E ÷ ROIC

&

P/E ÷ ROA

[Felix]

Thank you for the value!