fin_JustifiedPE: Justified P/E Ratio

In umx: Structural Equation Modeling and Twin Modeling in R

Justified P/E Ratio

Description

Compute the Justified P/E of a stock. Justified P/E = ( (DPS / EPS) * (1 + g)) / (k – g) DPS is the dividend per share, EPS is the earnings per share, g is the sustainable growth rate, and k is the required rate of return.

Usage

fin_JustifiedPE(
  Dividend = 0.02,
  EPS = 1,
  growthRate = 0.08,
  discountRate = 0.12,
  basePE = 20,
  yrs = 10
)

Arguments

Dividend	The dividend.
EPS	The Earnings per Share.
growthRate	The growth rate.
discountRate	Your chosen discount rate.
basePE	The base PE.
yrs	Years.

Value

• A PE that is justified for this stock.

See Also

• fin_interest(), fin_percent(), fin_NI()

Other Miscellaneous Functions: deg2rad(), fin_NI(), fin_interest(), fin_percent(), fin_ticker(), fin_valuation(), rad2deg(), umxBrownie()

Examples

# fin_JustifiedPE(Dividend= .8, EPS = 2, growthRate = .06, discountRate = .1)

umx documentation built on May 29, 2024, 5:40 a.m.