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The difference between the Justified Leading P/E and the Justified Trailing P/E formula is?

May 8, 2016

(1 + g)

Justified Leading P/E = (1-b)/(r-g)

Justified Trailing P/E = (1-b)(1+g)/(r-g)

g = dividend growth rate

r = required return

b = dividend retention rate

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From → Asset Valuation

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