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The Yardini Model (formula)

December 25, 2016

CEY = CBY – (b x LTEG) + Residual

CEY = current earnings yield = E1/P0

CBY = Moody’s A-rated corporate bond yield

LTEG = consensus five-year earnings growth

b = weighting factor given to five-year earnings projections usually 0.1

Justified P/E = 1 / CBY – (b * LTEG)


From → Asset Valuation

  1. David Nunn permalink

    Please could remove David from your mailing list as he is no longer alive. Regards, Deborah Nunn

    Sent from my iPhone


    • At first I thought this was spam, because I don’t have a mailing list. My condolences. He must have subscribed to be notified of new posts, you may have to login to to unsubscribe but I will try to remove him.

    • Done, I can delete this comment if you like…

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