Intrinsic P/E ratio

[vik2000]

Is this synonym with justified forward PE ratio or something? Calculated as (1-b)/(r-g).

 

[Reggie]

intrinsic PE ratio, I’ve also seen to be, PV of future CFs / r - g. I think any of the ways the CFAI texts show how to value a company, it is to find the intrinsic value. I would worry about it too much.

 

[bchad]

Intrinsic P/E is a synonym with justified P/E.

 

[cpk123]

=Tangible P/E + Franchise P/E
= 1/r + FF * G
FF = Franchise Factor= (1/R - 1/ROE) = (ROE-R)/(R.ROE)
G = Growth Factor=g/(r-g)
Tangible P/E = 1/r -> P/E for a No profitable projects (No positive NPV projects firm).