07-14-2015, 11:40 AM
(07-14-2015, 11:38 AM)EricL Wrote:(07-14-2015, 11:31 AM)notexactly Wrote: Novice question here.
O obviously has a very appealing dividend, but why are we so interested if the company has a p/e above 40?
Just curious what the logic is. Someone educate me!
REITs are generally valued based on Fund From Operations (FFO) rather than the traditional Earnings Per Shares (EPS).
So due to this difference, the P/E ratio is inflated?
If this is so, how do we evaluate a company like O? When do we know it's overvalued?