Originally Posted by
winner69
OMG - Forbars say a forward PE of 42
If they wrote that last April was about $35 and their guru analysts calculated FY22 EPS was only going to be about 59 cents they would have said 'forward PE of 60' and still said NEUTRAL
share price being down more 30% since then
The much revered Benjamin Graham described “investment” as buying a security at a valuation that is associated with a reasonable expectation of acceptable long-term returns, based on a careful analysis of the relationship between the current price and the assets and cash flows of the business. He also observed, “The habit of relating what is paid to what is being offered is an invaluable trait in investment.” In contrast, “speculation” involves buying a security simply on the expectation that its price will advance. If you are not using well-defined and historically reliable valuation measures as a basis for investment, and you don’t have a well-defined and historically validated basis on which to expect speculative behavior from other investors, you’re probably gambling.