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To convert justified leading P/E to justified P/B?

May 28, 2016

Multiply by ROE

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

Justified P/B = ROE(1-b)/(r-g)

⇒ (ROE – b * ROE)/(r-g) ⇒ (ROE – g)/(r-g)

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From → Asset Valuation

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