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 …
This is exactly why I disagreed w your initial claim. > This implies those growth rates continue into perpetuity,
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You can use what’s known as an H model, am which account for a period over which the high growth declines. We both agree that the high growth rate isn’t sustainable.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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Yeah, but the Gordon Growth Model was derived showing that it the G in the infinite series the GGM equals is long term sustainable growth.
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So maybe implies is the wrong word, rather than suggesting the analysis is improved by considering a more sustainable rate.
End of conversation
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