I've heard "PEG" (P/E to growth) used as a metric. Tesla has an annual 50% earnings growth, so P/E 200 / 50 = PEG of 4 Toyota P/E of 13 w 2% growth = PEG of 6 so... not wildly disparate !https://twitter.com/StephenFleming/status/1300799942995320832 …
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The present value of a cash flow stream is based on the risk adjusted rate of return and growth, PV = CF /(r - g)
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It’s the Gordon Growth Model.
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