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HereSince1628

(36,063 posts)

10. Looks simple...Price (current) /Earnings (last x period) * (estimated fut earnings)= fut. est. price

Reply to laundry_queen (Reply #8)

Wed Jun 13, 2012, 02:43 PM

Jun 2012

But there is a lot of uncertainty stuffed into estimated future earnings as well as the current price. If the company has been dodgy about earnings or expected earnings (and it seems they usually ARE), or if the current price is riding a bubble, then all the arithmetic doesn't do you much good.

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Du'ers who have degrees or advanced degrees in math, do you think that [View all] raccoon Jun 2012 OP

No. I think my patience makes me a better investor. Dawgs Jun 2012 #1

I don't generally cross-check that sort of thing, however... phantom power Jun 2012 #2

Math PhD's developed the algorithms for the derivatives that crashed the economy. pnwmom Jun 2012 #3

Doesn't the impact of insider information corrupt the variables to some degree? no_hypocrisy Jun 2012 #4

No, but it really helps in identifying a scam. n/t Egalitarian Thug Jun 2012 #5

People who read, people who understand qrtly reports, and people who can calculate fair market price HereSince1628 Jun 2012 #6

Agreed. laundry_queen Jun 2012 #8

Looks simple...Price (current) /Earnings (last x period) * (estimated fut earnings)= fut. est. price HereSince1628 Jun 2012 #10

A math degree isn't essential, per se.... lastlib Jun 2012 #7

Not for me TlalocW Jun 2012 #9