12-02-2013, 08:12 PM
I think a good way of judging a valuation technique is to see how closely the calculated value gets to the current value. The more stocks where the calculated value is close, the better the technique.
I did a very informal study trying different methods. That is how I settled on my personal method for moderate to high yield stocks. For the majority of stocks, the forward P/E ratio appears to have the best results.
I did a very informal study trying different methods. That is how I settled on my personal method for moderate to high yield stocks. For the majority of stocks, the forward P/E ratio appears to have the best results.